Date of Original Version

Winter 2002



Rights Management

Used with permission:

Abstract or Description

Both academic thinking about monetary economics and the practice of monetary policy have changed drastically since 1971–1973, when the rational expectations revolution was beginning and the Bretton Woods system was crumbling. The present article considers whether the various changes that have taken place were influenced primarily by economic theory or by empirical evidence—or by a combination of the two.



Published In

Federal Reserve Bank of Richmond Economic Quarterly, 88, 67-96.