The Relationship between Inflation and Inflation Uncertainty in the UK: 1885-1998
Using a long series of UK inflation data, I have provided strong evidence in favour of the hypothesis that inflationary periods are associated with high inflation uncertainty. This result supports the Friedman-Ball hypothesis and has important implications for the inflation-output relationship provided that more inflation uncertainty leads to lower output.
|Date of creation:||2000|
|Date of revision:||2000|
|Publication status:||Published in Economics Letters, Vol. 74, No. 1, 2001|
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