Journal Article


Karl Whelan
Jeremy Rudd



critical inflation finance mathematical models rational expectations economic theory literature sticky prices phillips curve rational expectations e31

Modeling inflation dynamics : a critical review of recent research (2007)

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.
Collections Ireland -> University College Dublin -> School of Economics
Ireland -> University College Dublin -> College of Social Sciences and Law
Ireland -> University College Dublin -> Economics Research Collection

Full list of authors on original publication

Karl Whelan, Jeremy Rudd

Experts in our system

Karl Whelan
University College Dublin
Total Publications: 70