implications for countries that target inflation in economies of this kind …

summarised as follows. (1) Historically, inflation persistence appears to have been the exception, rather than the rule, with … inflation estimated to have been highly persistent only during the period between the floating of the pound, in June 1972, and … the introduction of inflation targeting, in October 1992. Under inflation targeting, it exhibits some slight negative …

incorporate some “rule-of-thumb†price-setters that index to inflation over recent periods. These models are estimated for the … inertia in inflation than the baseline sticky-price model, its overall fit is worse. The results point toward substantial … gains in terms of fit for hybrid models with indexation that smoothes through quarterly volatility in inflation and clarify …

inflation? We develop and test versions of the model for which the answer to this question is yes. We then investigate whether …

In the late 1960s and into the 1970s, the United States experienced a burst of inflation the origins of which seemed … have arrived at the erroneous conclusion that its output-inflation trade-off was better than is truly the case. This … equilibria and restore stability of inflation expectations. An implication of this is that the observed higher volatility of the …

simplified model in which the decisions of the ECB are influenced only by the inflation level but we are working on a more …

rules. Accordingly, we augment a standard inflation targeting model in which a forward-looking version of the Taylor rule …