Can the Facts of UK Inflation Persistence Be Explained by Nominal Rigidity?
39 Pages Posted: 12 Jun 2008
Date Written: May 2008
Abstract
It has been widely argued that inflation persistence since WWII has been widespread and durable and that it can only be accounted for by models with a high degree of nominal rigidity. We examine UK post-war data where after confirming previous studies' findings of varying persistence due to changing monetary regimes, we find that models with little nominal rigidity are best equipped to explain it.
Keywords: Inflation Persistence, Monetary Regime Shifts, New Classical, New Keynesian, Nominal Rigidity
JEL Classification: E31, E37
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
An Overhaul of Doctrine: The Underpinning of U.K. Inflation Targeting
-
The Conduct of Global Monetary Policy and Domestic Stability
By Andrew P. Blake and Bojan Markovic
-
Opting Out of the Great Inflation: German Monetary Policy after the Break Down of Bretton Woods
By Andreas Beyer, Vitor Gaspar, ...
-
Opting Out of the Great Inflation: German Monetary Policy after the Break Down of Bretton Woods
By Andreas Beyer, Vitor Gaspar, ...
-
The Konstanz Seminar on Monetary Theory and Policy at Thirty
-
By Riccardo Dicecio and Edward Nelson
-
By Riccardo Dicecio and Edward Nelson