This paper analyzes the stability over time of the econometric process for Euro-area in nation since 1970, focusing in particular on the behaviour of the so-called persistence parameter (the sum of the coeffcients on the lagged dependent variables). Perhaps surprisingly, in light of the Lucas...

Despite their popularity as theoretical tools for illustrating the effects of nominal rigidities, some have questioned whether models based on Taylor-style staggered contracts can match the persistence of the empirical inflation process. This paper presents some general theoretical results about...