Inflation Persistence: Does Credibility of the Monetary Regime Matter?

Despite widespread recognition that credibility is an important determinant of inflation persistence, surprisingly little empirical evidence exists to support this hypothesis. We investigate this hypothesis using data for US and UK. Our results suggest that the degree of inflation persistence is strongly influenced by regime credibility.

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Year of publication:	2012
Authors:	Srinivasan, Naveen ; Kumar, Pankaj
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 32.2012, 4, p. 2944-2954
Publisher:	AccessEcon
Subject:	Inflation Persistence \| Credibility \| Kalman Filter

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Extent:	application/pdf
Type of publication:	Article
Classification:	E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; E3 - Prices, Business Fluctuations, and Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011278631