Guerrieri, Luca - Federal Reserve Board (Board of Governors of the … - 2002
inability to generate inflation persistence. This paper finds that staggered Taylor contracts are, in fact, capable of … reproducing the inflation persistence implied by U.S. data. Following Fuhrer and Moore, I capture the moments that the contract … specification needs to replicate by using the correlograms from a small vector autoregression (VAR) that includes inflation among …