This paper examines the degree of persistence in UK inflation by applying long-memory methods to historical data that … detect any shifts in the degree of persistence, and also run rolling-window and recursive regressions to investigate its … evolution over time. On the whole, the evidence suggests that the degree of persistence of UK inflation has been relatively …

This paper examines the degree of persistence in UK inflation by applying long-memory methods to historical data that … detect any shifts in the degree of persistence, and also run rolling-window and recursive regressions to investigate its … evolution over time. On the whole, the evidence suggests that the degree of persistence of UK inflation has been relatively …

, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence - policy …, these models fail to generate high real exchange rate persistence in response to monetary shocks, as policy inertia hampers …, increasing policy inertia may decrease real exchange rate persistence. …