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 …

inflation index indeed has a forward-looking component, as it has favorable inflation forecasting properties on the policy … suggest that the sticky price inflation index is a useful indicator for inflation targeting central banks. ….e. whose price changes rarely) contain more information about medium term inflation developments than those of flexible price …

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 …

The inflation rate is normally computed as a weighted average of individual price changes. Alternatively, this rate …

variable as some sort of average price. Instead it represents some price index indicating the average of the individual items …' price changes between the period considered and some base period. The Laspeyres and the Paasche index are cited as the best … to that of the base period. It is shown that a wide range of index formulas can be interpreted in this way, including the …

inflation are co-breaking. We argue that the step-like development of inflation is in line with shocks and monetary policy that …% inflation was accomplished by introducing an inflation targeting regime. …

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. …

current operating procedures and make monetary policies more effective in fighting inflation. …

While two strands of the literature suggest that PPI inflation, in addition to or instead of CPI inflation, should be a …. Our theory produces additional predictions that are also confirmed in the data. As such changes are structural rather than … temporary, the standard monetary policy rule that does not target the PPI inflation may have become increasingly problematic. …