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 …

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 …. This in large part reflects the weak instruments problem in the estimation of the NKPC, and is partly corrected by …

and consumer prices. The stylised facts underlying each equation are discussed and estimation results are presented. The …

, by reducing the extent of intermediated finance, can reduce output below potential and keep inflation below the central … this means that expected inflation is below target in the short run. Such a policy is optimal because it can help to avoid …

This paper presents a new measure of underlying inflation: component-smoothed inflation. It approaches the problem of … determining underlying inflation from a different direction than previous methods. Rather than excluding or trimming out volatile … signal. Because our underlying inflation measure includes all CPI items at all times, it is robust to sustained relative …

the headline CPI, exclusion-based ‘cores’, and trimmed means as measures of underlying inflation. Overall, we find that … support to the use of trimmed means as useful measures of underlying inflation at the current juncture where the growth of … China and other emerging markets is having two offsetting effects on global inflation. Whereas some central banks have …

information about inflation expectations – that survey measures of expectations are inconsistent with rational expectations, but … less so for financial markets than households; that actual and expected inflation interact with each other; and that the … foreign exchange market anticipates tighter monetary policy when inflation is higher than expected. The second half of the …