Bondage and Discipline
December 16, 2011 at 08:36 AM EST
When inflation rates in most countries soared during the 1970s, economists reacted by developing ad hoc theories about why this was inevitable with discretionary monetary regimes and governments that had a short term focus. The ink was hardly dry on all these acclaimed “time-inconsistency” theories when they were decisively refuted by events. Inflation fell sharply [...]