Arora, Vipin; Gomis-Porqueras, Pedro; Shi, Shuping - Department of Econometrics and Business Statistics, … - 2011
recently proposed test of Phillips et al. (2011a). We find evidence of explosive behaviour in the headline price index of … exhibit explosive behaviour. We also find evidence suggesting that inflation expectations behave differently under normal and … explosive periods. In particular, unemployment and interest rates also help predict inflation expectations during explosive …