Resource title

When Inflation Persistence Really Matters: Two examples

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Resource description

In this paper we present two examples where the presence of inflation persistence could influence the qualitative nature of monetary policy. In the first case the desirability of a monetary policy regime comes under question when extensive inflation persistence exists. In the second case the direction in which interest rates move following a cost push shock changes when inflation persistence becomes important. In both cases, inflation persistence is central to the process influencing policy.

Resource author

Tatiana Kirsanova, David Vines, Simon Wren-Lewis

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17863

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Adapt according to the presented license agreement and reference the original author.