infinite horizons, transaction costs technologies and flexible prices.  Second-best optimality calls for a positive inflation …

Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input … permanent shifts in the markup factor through estimating an inflation equation that includes a time-varying intercept. The model …

of the system to one comprising inflation and relative prices. This is then estimated in I(1) space. An impulse response … on domestic inflation is moderated. This explains why the depreciation of sterling in 1992 left inflation unchanged. In … contrast, high real import prices in 1974 increased inflation because wage accommodation effects were absent. …

Standard open economy models predict that openness to trade should exert a positive effect on the slope of the output-inflation …

inflation dynamics in open economies, but previous studies have not made a distinction between fixed and floating exchange rate … driving output and inflation (the underlying theory requires that monetary shocks dominate). We calculate new measures of the …

Recent decades have seen a considerable expansion of global trade and a simultaneous decline in inflation volatility …. This paper investigates whether greater openness to trade helps achieve inflation stability. Using panel data for a sample … effect of openness on inflation volatility. This relationship is estimated after controlling for the potential endogeneity of …

An I(2) analysis of Australian inflation and the markup is undertaken within an imperfect competition model. It is … inflation results in a lower markup in the steady state. The negative correlation between inflation and the markup is …

An I(2) analysis of inflation and the markup in undertaken for the G7 economies and Australia. We find that the levels … cointegrates with inflation and that higher inflation leads to a lower markup on the steady state. The lower markup is interpreted …