Amisano, Gianni; Fagan, Gabriel - 2010
We develop a time-varying transition probabilities Markov Switching model in which inflation is characterised by two … regimes (high and low inflation). Using Bayesian techniques, we apply the model to the euro area, Germany, the US, the UK and … Canada for data from the 1960s up to the present. Our estimates suggest that a smoothed measure of broad money growth …
