Models of Inflation in the United Kingdom: an Evaluation

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Abstract
In this article re-estimates are made of some of the main econometric models of inflation that have been proposed for the UK. Primarily these are wage inflation models, though reference is also made in the article to price equations. Estimates for each model are provided for a number of different post-war samples to investigate the reliability of each model and their adequacy in the light of recent high rates of inflation. The results for most of the models we consider are generally negative, except a wage inflation equation based on the hypothesis of a target rate of increase in real net earnings desired by workers which shows a great deal of consistency over the different sample periods.