Search Results - subject:"Inflation persistence"

Inflation Persistence: Is It Similar in the New EU Member States and the Euro Area Members?

Franta, Michal; Saxa, Branislav; Smidkova, Katerina - Institut ekonomických studií, Univerzita Karlova v Praze - 2008

Inflation persistence has been put forward as one of the potential reasons of divergence among euro area members. It … NMS went through, are applied. We emphasize that a time-varying mean models suggest similar or lower inflation persistence … University. This paper can be downloaded at: http://ies.fsv.cuni.cz Inflation Persistence: Is It Similar in the New EU …

Persistent link: https://www.econbiz.de/10005673630

Searching for additional sources of inflation persistence : the micro-price panel data approach

Raciborski, Rafal - 2008

It is often argued that the baseline New-Keynesian model, which relies solely on the notion of infrequent price adjustment, cannot account for the observed degree of inflation sluggishness. Therefore it is a common practice among macro modellers to introduce an ad hoc additional source of...

Persistent link: https://www.econbiz.de/10011610222

Monetary policy regimes and inflation in the new-Keynesian model

Moore, Bartholomew - In: Journal of Macroeconomics 40 (2014) C, pp. 323-337

This paper shows that plausible modifications to the Taylor rule for monetary policy can help explain several empirical anomalies to the behavior of inflation in the new-Keynesian general equilibrium model. The key anomalies considered are (1) the persistence of inflation, both in reduced form...

Persistent link: https://www.econbiz.de/10010777101

Sticky information and inflation persistence: evidence from the U.S. data

Molinari, Benedetto - In: Empirical Economics 46 (2014) 3, pp. 903-935

This paper analyzes the relationship between sticky information and inflation persistence by implementing a novel … information is significantly different if the model is estimated by matching inflation persistence or inflation variance. Previous … paper qualifies such a finding by demonstrating that the SIPC is able to match the inflation persistence only at the cost of …

Persistent link: https://www.econbiz.de/10010793998

Evolving UK and US macroeconomic dynamics through the lens of a model of deterministic structural change

Kapetanios, George; Yates, Tony - In: Empirical Economics 47 (2014) 1, pp. 305-345

using stochastic, time-varying parameter models. We document significant reductions in inflation persistence and …

Persistent link: https://www.econbiz.de/10010794004

The changing dynamics of US inflation persistence: a quantile regression approach

Tillmann, Peter; Wolters, Maik - Institut für Weltwirtschaft (IfW) - 2014

We examine both the degree and the structural stability of inflation persistence at different quantiles of the … rate. As economic theory provides reasons for inflation persistence to differ across conditional quantiles, this is a … potentially severe constraint. Conventional studies of inflation persistence cannot identify changes in persistence at selected …

Persistent link: https://www.econbiz.de/10010905561

Aggregation in large dynamic panels

Pesaran, M. Hashem; Chudik, Alexander - In: Journal of Econometrics 178 (2014) P2, pp. 273-285

extent to which ‘observed’ inflation persistence at the aggregate level is due to aggregation and/or common unobserved …

Persistent link: https://www.econbiz.de/10011052295

Stabilising Taylor rules when the supply shock has a unit root

Yao, Fang - In: Journal of Macroeconomics 41 (2014) C, pp. 16-20

This paper studies the implication of unit root supply shocks for the Taylor rule. I find that, when supply shocks have a unit root, if a central bank wishes to guarantee the stationarity of inflation, then their interest rate reaction function should not respond to the output gap. Once the...

Persistent link: https://www.econbiz.de/10011065294

Supply side inflation persistence

Civelli, Andrea; Zaniboni, Nicola - In: Economics Letters 125 (2014) 2, pp. 191-194

We explore the role of the cost channel in accounting for inflation persistence in the New Keynesian model with Calvo …

Persistent link: https://www.econbiz.de/10011076533

Behavioral learning equilibria

Hommes, Cars; Zhu, Mei - In: Journal of Economic Theory 150 (2014) C, pp. 778-814

We propose behavioral learning equilibria, where boundedly rational agents learn to use a simple univariate linear forecasting rule with correctly specified unconditional mean and first-order autocorrelation. In the long run, agents learn the best univariate linear forecasting rule, without...

Persistent link: https://www.econbiz.de/10010743797