Low Inflation vs. Stable Inflation
Evidence from the UK, 1688–2009
Bibliographic Data
| ID | 10492085 |
|---|---|
| Authors | Georgios Karras (0000-0003-3151-4744, University of Illinois Chicago, corresponding author) |
| Year | 2015 |
| Volume | 62 |
| Issue | 5 |
| Pages | 505-517 |
| Publication date | 2015-06-12 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Scottish Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0036-9292 • E-ISSN: 1467-9485 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/sjpe.12090 |
| OpenAlex | W2118469529 |
| Language | EN |
| References cited | 19 |
This paper investigates the relationship between inflation and inflation volatility. Using annual data from 1688 to 2009, the results show that UK inflation and its volatility have been positively correlated when inflation exceeds a certain value, but negatively correlated when inflation is below this threshold. The evidence also suggests that the break in the relationship occurs between annual inflation rates of 0.6% and 5.5%, which includes both the 2% inflation target of many central banks, and the 3.5% break point predicted by the New Keynesian model of Coibion et al . (2012)
Econometrics · Economic stability · Economics · Inflation (cosmology · Inflation targeting · Keynesian economics · Monetary economics · Monetary policy · New Keynesian economics · Physics · Real interest rate · Volatility (finance · Economic Theory and Policy · Market Dynamics and Volatility · Monetary Policy and Economic Impact
| Highly cited | No |
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