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The Relationship between Inflation and Inflation Uncertainty in the UK: 1885-1998

Stilianos Fountas

No 48, Working Papers from National University of Ireland Galway, Department of Economics

Abstract: 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.

JEL-codes: C22 (search for similar items in EconPapers)
Date: 2000, Revised 2000
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Published in Economics Letters, Vol. 74, No. 1, 2001

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