prices are indexed to past inflation. These problems arise because of a type of misspecification and a lack of suitable …

include that a positive output gap would be less inflationary, but the cost of reducing inflation, once established, would …

Inflation rates across countries tend to exhibit a degree of co-movement. In this paper we use a panel vector … prices are found to be more important than common movements in real activity as a driver of 'global inflation' dynamics …. However, commodity prices and common real activity cannot explain all of the co-movement in inflation. Even when controlling …

of incipient changes in inflation. This paper reviews five methods of estimating it for Australian GDP data, including … across the range of methods examined. Inflation equations are substantially improved when any measure of the gap is included …, and output gaps generally explain innovations in inflation better than output growth. …

favour of the SIPC over the low-inflation period. Parameter estimates are sensitive to inflation measures and sample periods … the fact that inflation has become difficult to model since the introduction of inflation targeting. Over sample periods …

This paper estimates a range of single-equation models of inflation for Australia. We find that traditional models …-Keynesian Phillips curve (NKPC) in explaining trimmed mean inflation, both in terms of in-sample fit and significance of coefficients … including a direct measure of inflation expectations, but we still find that the unemployment rate or growth in marginal costs …

This paper examines the effect of inflation on productivity growth in Australia. Broad historical correlations suggest … a negative relationship between inflation and aggregate productivity growth. The low-frequency nature of the … significant results with industry-level inflation explaining industry productivity. We also find that the relationship varies by …

Ball and Sheridan (forthcoming) show that OECD countries with a history of high inflation before the 1990s have … subsequently experienced a larger degree of disinflation than countries with a history of low inflation. They label this process … ‘regression to the mean’, and argue that it explains why those OECD countries which adopted inflation targeting experienced larger …

. These include the distinction between the short and long-run trade-offs between inflation and unemployment, and the changing … level of the non-accelerating inflation rate of unemployment (NAIRU), particularly in the 1970s. We estimate Phillips curves … discussion of the changing role of the Phillips curve in the intellectual framework used to analyse inflation within the Reserve …