Discussion paper

DP6834 Can the Facts of UK Inflation Persistence be Explained by Nominal Rigidity?

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.

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Citation

Minford, P, E Nowell, N Srinivasan, D Meenagh and P Sofat (2008), ‘DP6834 Can the Facts of UK Inflation Persistence be Explained by Nominal Rigidity?‘, CEPR Discussion Paper No. 6834. CEPR Press, Paris & London. https://cepr.org/publications/dp6834