Can the Facts of UK Inflation Persistence be Explained by Nominal Rigidity?

David Meenagh (), A. Patrick L. Minford, Eric Nowell, Prakriti Sofat and Naveen Srinivasan

No 6834, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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.

Keywords: Inflation Persistence; Monetary Regime Shifts; New Classical; New Keynesian; Nominal Rigidity (search for similar items in EconPapers)
JEL-codes: E31 E37 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Date: 2008-05

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