(1997). The use of cointegration techniques enables to include this generated regressor to the estimation equation, because … inflation expectations in Finland utilising a univariate time series model and a special structural change procedure in Junttila … asymptotically vanishes when unit root methods are applied. In this work the primary method in the cointegration analysis is the …

interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary … tightening reduce inflation. I simulate different monetary policy through a variable inflation target. Wild swings in the target … kill the persistence in inflation, which may explain the absence of persistence under the Gold Standard. A stable target …

inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a … white noise process in the pre-World War I years to a highly persistent, nonstationary ARIMA process in the post-1960 period … stochastic process of inflation, rather than a change in any structural relationship between nominal rates and expectedi nflation …

inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a … white noise process in the pre-World War I years to a highly persistent, nonstationary ARIMA process in the post-1960 period … stochastic process of inflation, rather than a change in any structural relationship between nominal rates and expectedi nflation …

(1/P)] whereas the ubiquitous conventional Fisher equation (CFE) uses expected goods inflation [percent change in E … non-rationality leveled against the CFE. The puzzling substitution of inflation for expected money appreciation in Fisher …

in previous studies, i.e., the finding of nominal interest rates not fully adjusting to changes in inflation, may be … attributed to the particular time series behavior of inflation and interest rates which cannot be accounted for by standard non …-stationary models. The stochastic process governing the bivariate system of inflation and interest rates depends on the level of the …