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Estimated Effects of the Oct. 1979 Change in Monetary Policy on the 1980 Economy

Ray C. Fair

American Economic Review 1981

On October 6. 1979, the Federal Reserve announced what most people interpreted as a change in monetary policy. The purpose of this paper is to estimate the effects of this change on the 1980-81 economy. The effects of the change are estimated from simulations with my model of the U.S. economy (1976, 1980b).

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