‘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 …

Relying on the backward-looking Phillips curve, we estimate the level of inflation that erodes price rigidity and … varying threshold inflation levels. Studying six advanced countries over the 1970-2012 period, our results show that both the … slope of the Phillips curve and the threshold trend inflation that erodes price rigidity are time varying. These …

-systematic component of inflation modeled autoregressively, where a distortion is caused by a simple first-order bilinear process. The …

How detrimental is inflation to growth in South Africa? At what level? Motivated by the adoption of inflation targeting … by many countries, this paper sets out to empirically determine the threshold level of inflation in South Africa. This …. The results show that the inflation threshold level occurs at 4 percent. At inflation levels below and up to 4 percent …

Inflation is usually defined as a generalized and persistent change in the price level. But this notion seems to be …, that inflation dynamics is always dominated by a strong comovement in sectoral prices. Nor that absolute price changes … predominate over relative price adjustment. What is more, it is expected that in normal times, when inflation remains at a low …

Using frequency domain techniques to separate short and long run dynamics and decomposing inflation into its common and … idiosyncratic components, we study the regime dependence of the inflation-RPV relation in Argentina and the USA. Under High … inflation, strong long-run comovement between RPV and inflation is found for both economies, that extends to the short run …

‘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 …

This paper constructs a quarterly series of GDP deflator inflation for China from 1979 to 2009 and tests for a … structural break with an unknown change point in the dynamic inflation process. Empirical results suggest a significant … structural change in inflation persistence. Employing a counterfactual simulation method, we show that the structural change is …

, based on a multivariate dynamic model featuring distinct interactions among inflation, money, and real output in China. The …The New Keynesian Phillips curve implies that the output gap, the deviation of the actual output from its natural level … due to nominal rigidities, drives the dynamics of inflation relative to expected inflation and lagged inflation. This …

Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input … permanent shifts in the markup factor through estimating an inflation equation that includes a time-varying intercept. The model …