Following the Asian Financial Crisis in 1997-98, a number of regional central banks have adopted inflation targeting …. We explore how successful this framework has been by looking at the persistence of inflation as measured by the sum of … the coefficients in an autoregressive model for inflation using Hansen's (1999) median unbiased estimator. In contrast to …

We test the menu cost model of Ball and Mankiw (1994, 1995) on data from the inflation and deflation periods in Japan … during both inflation and deflation, is strongly supported. The data are less clear on, but does not reject, the hypothesis … that the parameter on the standard deviation changes sign between inflation and deflation periods. …