This paper constructs a quarterly series of GDP deflator inflation for China from 1979 to 2009 and tests for a … structural break with an unknown change point in the dynamic inflation process. Empirical results suggest a significant … structural change in inflation persistence. Employing a counterfactual simulation method, we show that the structural change is …

We study optimal monetary policy for a small open economy in a model where both inflation and output show persistence … indexation to past inflation. The message conveyed from this study can be viewed as twofold. First, full stabilization of … correlation in domestic inflation, whereas under full stabilization of domestic prices the output gap displays some serial …

We investigated the dynamic behavior of the overall inflation rate, its subgroups, and inflation rates of traded and … and Xiao (2004). This method makes no assumptions about the distribution of inflation rates and allowed us to analyze … possible asymmetry in mean reversion toward the equilibrium for inflation rates. Our results revealed an asymmetric speed in …