Cogley, Timothy; Primiceri, Giorgio E.; Sargent, Thomas J. - In: American Economic Journal: Macroeconomics 2 (2010) 1, pp. 43-69
inflation persistence has changed. We focus on the inflation gap, defined as the difference between inflation and trend … inflation, and we measure persistence in terms of short- to medium-term predictability. We present evidence that inflation …-gap persistence increased during the Great Inflation and that it fell after the Volcker disinflation. We interpret these changes using …