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 inability of central banks to attain their target inflation rates in recent years has raised questions about the … extent to which central banks can control the inflation process. This paper discusses the evolution of thought and evidence … since the 1960s on the determinants of inflation and the role that should be played by central banks. The paper highlights …

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 …

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 …

The transition economies were remarkably successful in curbing the inflation that took place after the initial … transition and shocks and, more recently, most of the countries have brought inflation down to the levels found in major … have played an important role. The paper also surveys the literature on the quality of the inflation data, the extent to …

It has been argued that economies with more independent central banks experience lower inflation over time. In this … the inflation rate dynamics. Second, we implement a panel data analysis. We find evidence that legislative reforms that … modify the degree of independence of a central bank have a strong impact on the inflation rate dynamics. Moreover, underlying …

-run trade-offs between output and inflation: lower trend inflation flattens the Phillips curve and decreases steady-state output … by increasing markups. We show that the aggregator reduces both the steady-state welfare cost of higher trend inflation … and the inflation-related weight in a model-based welfare function for higher trend inflation. Consequently, optimal trend …

and as an inflation indicator. It is shown that the index can be misleading in both cases. The MCI is ineffective in … be misleading in the case of a supply shock. As an inflation indicator the index is also subject to some drawbacks in the …In recent years increasing use has been made in monetary policy analysis of the so-called Monetary Conditions Index …

Bank of Canada research done prior to the most recent renewal of the inflation-control agreement in 2011 concluded that … future than they were during the first two decades of inflation targeting. As a consequence, the probability of being … a higher inflation target. …

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 …