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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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6834.

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Date of creation: May 2008
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Handle: RePEc:cpr:ceprdp:6834
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