Bowdler, Christopher; Nielsen, Heino Bohn - Department of Economics, Oxford University - 2003
of the system to one comprising inflation and relative prices. This is then estimated in I(1) space. An impulse response … on domestic inflation is moderated. This explains why the depreciation of sterling in 1992 left inflation unchanged. In … contrast, high real import prices in 1974 increased inflation because wage accommodation effects were absent. …