Modeling Inflation Dynamics: A Critical Review of Recent Research

Jeremy Rudd and Karl Whelan ()

Journal of Money, Credit and Banking, 2007, vol. 39, issue s1, 155-170

Abstract: In recent years, a broad academic consensus has arisen that favors using rational expectations sticky‐price models to capture inflation dynamics. We review the principal conclusions of this literature concerning: (1) the ability of these models to fit the data; (2) the importance of rational forward‐looking expectations in price setting; and (3) the appropriate measure of inflationary pressures. We argue that existing models fail to provide a useful empirical description of the inflation process.

Date: 2007
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https://doi.org/10.1111/j.1538-4616.2007.00019.x

Related works:
Journal Article: Modeling Inflation Dynamics: A Critical Review of Recent Research (2007)
Working Paper: Modeling inflation dynamics: a critical review of recent research (2007)
Working Paper: Modelling Inflation Dynamics: A Critical Review of Recent Research (2005)
Working Paper: Modelling inflation dynamics: a critical review of recent research (2005)
Working Paper: Modelling inflation dynamics: a critical review of recent research (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:39:y:2007:i:s1:p:155-170

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