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The Modeling the Dynamics of In‡ation Compensation

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Author Info
Markus Jochmann () (University of Strathclyde)
Gary Koop () (University of Strathclyde, Rimini Center for Economic Analysis.)
Simon M. Potter () (Federal Reserve Bank of New York)

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Abstract

This paper investigates the relationship between short-term and long-term in‡ation expectations using daily data on in‡ation compen- sation. We use a ‡exible econometric model which allows us to uncover this relationship in a data-based manner. We relate our ndings to the issue of whether in‡ation expectations are anchored, unmoored or contained. Our empirical results indicate no support for either unmoored or rmly anchored in‡ation expectations. Most evidence indicates that in‡ation expectations are contained.

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Publisher Info
Paper provided by Rimini Centre for Economic Analysis in its series Working Paper Series with number 15-09.

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Date of creation: Jan 2009
Date of revision: Jan 2009
Handle: RePEc:rim:rimwps:15-09

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This page was last updated on 2009-11-4.


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