Inflation persistence

Jeffrey Fuhrer

No 09-14, Working Papers from Federal Reserve Bank of Boston

Abstract: This paper examines the concept of inflation persistence in macroeconomic theory. It begins with a definition of persistence, emphasizing the difference between reduced-form and structural persistence. It then examines a number of empirical measures of reduced-form persistence, considering the possibility that persistence may have changed over time. The paper then examines the theoretical sources of persistence, distinguishing ?intrinsic? from ?inherited? persistence, and deriving a number of analytical results on persistence. It summarizes the implications for persistence from the literatures on ?sticky-information? models, learning models, and so-called ?trend inflation models,? providing some new results throughout.

Keywords: Inflation (Finance); Phillips curve (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (21)

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Related works:
Chapter: Inflation Persistence (2010)
Journal Article: Inflation Persistence (1995)
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