We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … dynamics of inflation. We combine this model with the `exchange-rate-regime' model of inflation and examine the experience of … the United Kingdom. Outside the fixed exchange rate regime of Bretton Woods, persistently high inflation can be attributed …

natural rate of unemployment. In addition, because of differential inflation across countries, real exchange rates become …

shifts in the parameters of wage equations when the process generating price inflation changes. The two major shifts that we …

Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input … permanent shifts in the markup factor through estimating an inflation equation that includes a time-varying intercept. The model …

of the system to one comprising inflation and relative prices. This is then estimated in I(1) space. An impulse response … on domestic inflation is moderated. This explains why the depreciation of sterling in 1992 left inflation unchanged. In … contrast, high real import prices in 1974 increased inflation because wage accommodation effects were absent. …

Standard open economy models predict that openness to trade should exert a positive effect on the slope of the output-inflation …

inflation dynamics in open economies, but previous studies have not made a distinction between fixed and floating exchange rate … driving output and inflation (the underlying theory requires that monetary shocks dominate). We calculate new measures of the …

Recent decades have seen a considerable expansion of global trade and a simultaneous decline in inflation volatility …. This paper investigates whether greater openness to trade helps achieve inflation stability. Using panel data for a sample … effect of openness on inflation volatility. This relationship is estimated after controlling for the potential endogeneity of …

This paper investigates the relation between the dynamics of inflation and exchange-rate regimes. It demonstrates that … associated with negligible persistence of inflation in the industrial economies, while regimes of managed exchange rates are … associated with very high persistence of inflation: the interwar period is associated with persistent deflation, the more recent …