The Dynamics of UK and US Inflation Expectations
Koop, Gary and Gefang, Deborah and Potter, Simon M. (2008) The Dynamics of UK and US Inflation Expectations. Discussion paper. University of Strathclyde, Glasgow.
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Abstract
This paper investigates the relationship between short term and long term inflation expectations in the US and the UK with a focus on inflation pass through (i.e. how changes in short term expectations affect long term expectations). An econometric methodology is used which allows us to uncover the relationship between inflation pass through and various explanatory variables. We relate our empirical results to theoretical models of anchored, contained and unmoored inflation expectations. For neither country do we find anchored or unmoored inflation expectations. For the US, contained inflation expectations are found. For the UK, our findings are not consistent with the specific model of contained inflation expectations presented here, but are consistent with a more broad view of expectations being constrained by the existence of an inflation target.
ORCID iDs
Koop, Gary ORCID: https://orcid.org/0000-0002-6091-378X, Gefang, Deborah and Potter, Simon M.;-
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Item type: Monograph(Discussion paper) ID code: 67937 Dates: DateEventDecember 2008PublishedNotes: Discussion paper. Subjects: Social Sciences > Economic Theory Department: Strathclyde Business School > Economics Depositing user: Pure Administrator Date deposited: 21 May 2019 15:23 Last modified: 01 Sep 2024 01:50 URI: https://strathprints.strath.ac.uk/id/eprint/67937