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Can the facts of UK inflation persistence be explained by nominal rigidity?

  • Meenagh, David
  • Minford, Patrick
  • Nowell, Eric
  • Sofat, Prakriti
  • Srinivasan, Naveen

It has been widely argued that inflation persistence since WWII has been widespread and durable and that it can only be accounted for by models with a high degree of nominal rigidity. We examine UK post-war data where after confirming previous studies' findings of varying persistence due to changing monetary regimes, we find that models with little nominal rigidity are best equipped to explain it.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 26 (2009)
Issue (Month): 5 (September)
Pages: 978-992

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Handle: RePEc:eee:ecmode:v:26:y:2009:i:5:p:978-992
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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