From the abstract:
This paper studies the Great Inﬂation in Canada, Australia, and New Zealand. Newspaper coverage and policies, and the diﬀerent movement in each country away from 1970s views. I argue that to understand the course of policy in each country, it is crucial to use the monetary policy neglect hypothesis, which claims that the Great Inﬂation occurred because policymakers delegated inﬂation control to nonmonetary devices. This hypothesis helps explain why, unlike Canada, Australia and New Zealand continued to suﬀer high inﬂation in the mid-1980s. The delayed disinﬂation in these countries reﬂected the continuing importance accorded to nonmonetary views of inﬂation.
Before that, Robert Hetzel wrote in “Arthur Burns and Inflation”:
How did Burns view macroeconomic policy as an economist? Most generally, Burns had a credit view of monetary policy. That is, monetary policy worked through its inﬂuence on the credit market. However, monetary policy was only one factor affecting credit markets. At times, in its inﬂuence on inﬂation, monetary policy could be overwhelmed by other factors. More speciﬁcally, Burns had a real or nonmonetary view of inﬂation. That is, inﬂation could arise from a variety of sources other than just money. He believed that a central bank could cause inﬂation by monetizing government deﬁcits but did not attribute inﬂation to that source in the early 1970s. Instead, he attributed it to the exercise of monopoly power by unions and large corporations.
If conventional monetary policy weapons were powerless to deal with these forces, then perhaps direct controls might work. Accordingly, President Nixon imposed wage and price controls on August 15, 1971.
Only missing from the “Rat Pack” (of Anglo Saxon countries) is the UK.
Read the whole article here.