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 …

Low and unresponsive inflation has been termed a “puzzle.” The paper describes a formula for which these conditions … variability of forward long-term inflation. Its U.S. inflation forecasts are comparable to recognized leaders in accuracy with … potential applicability to international economies as well.Inflation Elasticity, the responsiveness of inflation to monetary …

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 …

We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …

The Shadow Open Market Committee was formed in 1973 in response to rising inflation and the apparent unwillingness of U … favored by the Shadow would have lowered inflation with less impact on output growth, and with less variability in output and … inflation, than a one-time reduction in monetary growth. We conclude that the Shadow articulated a sensible policy that would …