EconPapers    
Economics at your fingertips  
 

Non-linear Inflationary Dynamics: Evidence from the UK

Michael Arghyrou (), Christopher Martin () and Costas Milas ()

Economics and Finance Discussion Papers from Economics and Finance Section, School of Social Sciences, Brunel University

Abstract: This paper estimates a variety of models of inflation using quarterly data for the UK between 1965 and 2001. We find strong evidence that the persistence of inflation is nonlinear and that inflation adjusted more rapidly in periods of macroeconomic stress such as the mid-1970s, the early 1980s and the late 1980s-early 1990s. Our results imply that inflation will respond more strongly and more rapidly to changes in interest rates when the price level is further away from the steady state level. This has implications for optimal monetary policy.

Pages: 29 pages
Date: 2003-02
New Economics Papers: this item is included in nep-mon
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.brunel.ac.uk/329/efwps/03-03.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.brunel.ac.uk/329/efwps/03-03.pdf [302 Found]--> https://www.brunel.ac.uk/329/efwps/03-03.pdf)

Related works:
Journal Article: Non-linear inflationary dynamics: evidence from the UK (2005) Downloads
Working Paper: Non-linear Inflationary Dynamics: Evidence from the UK (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bru:bruedp:03-03

Access Statistics for this paper

More papers in Economics and Finance Discussion Papers from Economics and Finance Section, School of Social Sciences, Brunel University Brunel University, Uxbridge, Middlesex UB8 3PH, UK.
Bibliographic data for series maintained by John.Hunter ().

 
Page updated 2020-06-02
Handle: RePEc:bru:bruedp:03-03