. In particular, the consequences of inflation having discrete breaks in mean, for example caused by supply shocks and the … dynamic inflation terms of the Phillips curve. We suggest a method to account for the breaks in mean and obtain meaningful and … example based on United States data that not taking account of breaks may lead to spuriously upwardly biased estimates of the …

This paper argues that because United States inflation has been nonstationary over the past 5 decades the body of … empirical research that proceeds assuming explicitly or implicitly that inflation is stationary with constant mean is largely … invalid. Using 50 years of US inflation data the standard results in the Phillips curve literature are shown to be due to …

particular, the consequences of inflation having discrete breaks in mean have not been studied adequately. We show by means of … therefore spurious estimates of Phillips curves. We suggest a method to account for the breaks in mean inflation and obtain … simulations and a detailed empirical example based on United States data that not taking account of breaks may lead to biased and …

‘Modern’ Phillips curve theories predict inflation is an integrated, or near integrated, process. However, inflation … shifting mean. If agents believe inflation is integrated as in the ‘modern’ theories then they are making systematic errors … concerning the statistical process of inflation. An alternative theory of the Phillips curve is developed that is consistent with …

We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

its impact on inflation. Indeed, the vast majority of consumers, both in the euro area as a whole and in Belgium, were … both the movement of actual prices over the five years following the changeover to the euro and the trend in inflation … contributed to the breaking of the link between actual and perceived inflation. There is clear evidence that the euro cash …

We find strong econometric support for a break in the relationship between perceived and HICP inflation in the euro …

We analyse the determinants of the inflation trends in ten Southeast European (SEE) countries. Global cost …-related factors and euro area inflation developments play an important role in explaining inflation dynamics in SEE countries. Changes … exchange to the euro area (EA) market appear to be susceptible to inflation spillovers from the euro area. Moreover, nominal …

We analyze the determinants of the inflation trends in ten Southeast European (SEE) countries. Global cost …-related factors and euro area (EA) inflation developments play an important role in explaining inflation dynamics in SEE countries … exchange to euro area market appear to be susceptible to inflation spillovers from the euro area. Moreover, nominal effective …