This paper provides evidence on price markup and inflation dynamics in Italy over the period 1970-1998. We investigate the price mark-up on imported and labor costs and its relation to inflation, using cointegration techniques. It is found that, despite different policy regimes across decades,...

In this paper a paper for the dynamics of inflation in Italy is proposed.Changes in monetary and credit markets, along with substantional changes in many sectors of the Italian economy suggest to split the sample period into two sub-sample and modelling the dynamics of inflation differently for...