Investigating Inflation Persistence Across Monetary Regimes*
Top Cited Papers
- 1 August 2008
- journal article
- Published by Oxford University Press (OUP) in The Quarterly Journal of Economics
- Vol. 123 (3) , 1005-1060
- https://doi.org/10.1162/qjec.2008.123.3.1005
Abstract
Under inflation, targeting estimates of the indexation parameter in hybrid New Keynesian Phillips curves are either equal to zero, or very low, in the United Kingdom, Canada, Sweden, and New Zealand. Analogous results hold for the Euro area under the European Monetary Union, and for Switzerland under the new monetary regime: under stable regimes with clearly defined nominal anchors, inflation appears to be purely forward-looking. These results question the notion that the intrinsic inflation persistence found in post-WWII U.S. data is structural in the sense of Lucas (Carnegie-Rochester Conference Series on Public Policy, 1 [1976], 19–46), and suggest that “hardwiring” inflation persistence in macroeconomic models is potentially misleading.Keywords
All Related Versions
This publication has 53 references indexed in Scilit:
- Investigating the Structural Stability of the Phillips Curve RelationshipSSRN Electronic Journal, 2008
- How Much Structure in Empirical Models?SSRN Electronic Journal, 2007
- Bayesian Analysis of DSGE ModelsEconometric Reviews, 2007
- UK Monetary Regimes and Macroeconomic Stylised FactsSSRN Electronic Journal, 2006
- Has the Inflation Process Changed?SSRN Electronic Journal, 2005
- Drifts and volatilities: monetary policies and outcomes in the post WWII USReview of Economic Dynamics, 2005
- Weak Identification of Forward‐looking Models in Monetary Economics*Oxford Bulletin of Economics and Statistics, 2004
- Testing for Indeterminacy: An Application to U.S. Monetary PolicyAmerican Economic Review, 2004
- Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory*The Quarterly Journal of Economics, 2000
- Econometric policy evaluation: A critiqueCarnegie-Rochester Conference Series on Public Policy, 1976