39 Pages Posted: 12 Jun 2008
Date Written: May 2008
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
Meenagh, David and Minford, Patrick and Nowell, Eric and Sofat, Prakriti and Srinivasan, Naveen, Can the Facts of UK Inflation Persistence Be Explained by Nominal Rigidity? (May 2008). , Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1143197
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