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 … due to frequent breaks in inflation time series in the NMS. Structural persistence measures show that backward …

Is inflation persistence in the new EU Member States (NMS) comparable to that in the euro area countries? We argue that … show that due to frequent breaks in inflation time series in the NMS, parametric statistical measures assuming a constant …-varying mean leads to the reversal of this result and suggests similar or lower inflation persistence for the NMS compared to euro …

Is inflation persistence in the new EU Member States (NMS) comparable to that in the euro area countries? We argue that … show that due to frequent breaks in inflation time series in the NMS, parametric statistical measures assuming a constant …-varying mean leads to the reversal of this result and suggests similar or lower inflation persistence for the NMS compared to euro …

This paper examines the concept of inflation persistence in macroeconomic theory. It begins with a definition of …-information" models, learning models, and so-called "trend inflation models," providing some new results throughout …

-run relationship between inflation and output is positive in the Rotemberg model and negative in the Calvo model. ii) The log … inflation enlarges the determinacy region in the Rotemberg model, while it shrinks the determinacy region in the Calvo model. iv …) The responses of output and inflation to a positive technology shock are amplified by trend inflation in Calvo, while they …