The Conquest of American Inflation

The book offers a thorough analysis of U.S. inflation trends since 1960, exploring two main theories: the natural-rate hypothesis with the Lucas critique and a traditional econometric approach enhanced by adaptive expectations. Sargent aims to identify which explanation more accurately accounts for inflation and unemployment dynamics, while also documenting the underlying economic forces that drive inflation. His work serves as a valuable resource for understanding historical inflation patterns and their implications for future economic policy.