Sbordone, Argia M.; Cogley, Timothy - Society for Computational Economics - SCE - 2004
that the dynamics of inflation is well explained by the evolution of real marginal costs. The objective of this paper is to … analyze whether this model of inflation dynamics has the nature of a structurally invariant relationship. To assess this, we … first analyze an unrestricted time series representation of the joint process of inflation and unit labor costs (or labor …