This paper conducts a structural analysis of inflation persistence in the United Kingdom between 1965-2009. I allow for … and stochastic shock volatility. The first policy regime responds passively to movements in inflation, adjusting the … other regime responds actively to inflation and places less weight on exchange rate movements. This regime is present for …

In this paper we use empirical cross-country correlation coefficients of GDP- and private consumption data as a measure … find, that the so-called consumption correlation puzzle with high output correlations and considerably small …

repo rate in response to increases in the output gap and, except in Peru, to deviations of inflation expectations from … of integrated inflation targeting. There is strong evidence that intervention in F/X markets is determined by exchange … strong currency. Central banks appear to have pursued an inflation objective using a standard Taylor rule and an exchange …

responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …