The Effects of External Inflationary Shocks

James L. Pierce and

JLP

James L. Pierce Staff, Board of Governors of the Federal Reserve System

Jared J. Enzler

JJE

Jared J. Enzler Staff, Board of Governors of the Federal Reserve System

Discussants: David I. Fand and

DIF

David I. Fand

R. J. Gordon

RJG

R. J. Gordon

THE ECONOMY IS ALWAYS VULNERABLE to a variety of external influences or shocks that have important impacts on income, employment, and prices. While these external shocks are unforeseeable and unavoidable, economic policy must somehow deal with their consequences.