amplified by a rather high degree of inflation persistence. On the other hand, “convergence factors”, namely the price …

It is often argued that the New Keynesian Phillips curve is at odds with the data because it cannot explain inflation … persistence — the difficulty of returning inflation immediately to target after a shock without any loss of output. This paper … CEP Discussion Paper No 837 November 2007 Intrinsic Inflation Persistence Kevin D. Sheedy …

-off, and (IV) inflation persistence result in optimal positive long-run inflation. The combination of (I), (II), and (III … steady-state inflation obtains if and only if there is a long-run incentive for positive inflation. Inflation persistence … steady-state inflation obtains in the basic neo-Wicksellian model (Woodford (2003)) with inflation persistence due to …

other sources of sluggishness to explain the observed high inflation persistence. Second, we confront empirically our fair …

has dissipated, making inflation persistence much harder to explain. …There is much evidence that price-adjustment frequencies vary widely across industries. This paper shows that inflation … persistence is lower with heterogeneity in price stickiness than without it, taking as given the degree of persistence in …

the short run without any accommodation of structural inflation persistence, that is, inflation which it is costly to … target is loosened to accommodate fully any structural inflation persistence, and any past deviations from the inflation … to in the short run without any accommodation of structural inflation persistence, that is, inflation which it is …

This paper estimates the path of inflation persistence in the United States over the last 50 years and draws … predict that the central bank's preference for output stability is a determinant of inflation persistence. Hence, time … variation of that preference should be reflected in changes in inflation persistence. We estimate an ARMA(1,q) model with a time …