Type

Journal Article

Authors

Karl Whelan
Jeremy Rudd

Subjects

Economics

Topics
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

1
Karl Whelan
University College Dublin
Total Publications: 70