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 …

The Shadow Open Market Committee was formed in 1973 in response to rising inflation and the apparent unwillingness of U … favored by the Shadow would have lowered inflation with less impact on output growth, and with less variability in output and … inflation, than a one-time reduction in monetary growth. We conclude that the Shadow articulated a sensible policy that would …

This paper examines the concept of inflation persistence in macroeconomic theory. It begins with a definition of …-information" models, learning models, and so-called "trend inflation models," providing some new results throughout …

We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …

particular the aim of price stability, understood as low and stable inflation. Design/Research methods: The article was prepared … inflation reduces uncertainty about future price developments. This facilitates decision-making for companies concerning …

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a … to inflation and the output gap, we show that the empirically observed changes in U.S. inflation-gap persistence during … Benati's (2008) view that inflation persistence should not be considered a structural parameter in the sense of Lucas …

we calibrate the share of constrained agents to fit the wealth Gini index for the US, the optimal inflation rate is above …A popular argument in favour of price stability is that the inflation-tax burden would disproportionately fall on the … interest bearing assets (LAMP). We show that a combination of higher inflation and lower income taxes reduces inequality. When …

qualitative and quantitative information on subsequent inflation. The usefulness of monetary analysis is contrasted to weaknesses … in modeling monetary policy and inflation with respectively short-term interest rates and real activity measures. The … analysis sheds light on the recent change in inflation volatility and persistence as well as on the Phillips curve flattening …

the economy, when assuming that the monetary authority put higher weight on inflation stabilization than society. We … demonstrate that inflation-conservatism unambiguously leads to social welfare losses if the fiscal authority acts strategically …

Inflation persistence or ‘inertia’ has important consequences for monetary policy. Inflation which does not get … influence on inflation persistence by its credibility and responses in the face of inflationary shocks. In this study, we use a … flexible, time-varying parameter approach to analyze inflation persistence in the United Kingdom and United States during 1880 …