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Duration dependence in monetary policy: international evidence

  • Michael T. Owyang
  • Abbigail Chiodo

We study the duration of monetary regimes in a simple neo-classical Phillips curve model. The model is an extension of Owyang (2001) and Owyang and Ramey (2001). In this paper, we consider the role of the duration of inflationary regimes on the average inflation rate in an international cross-section. We find that inflationary regimes in certain countries are duration dependent but anti-inflationary regimes are not. In addition, we find that countries with high central banker turnover switch from inflationary to anti-inflationary with lower probability.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2002-021.

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Date of creation: 2002
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Handle: RePEc:fip:fedlwp:2002-021
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  25. Evan F. Koenig, 2001. "What goes down must come up: understanding time-variation in the NAIRU," Working Papers 0101, Federal Reserve Bank of Dallas.
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