Time variation in inflation persistence: New evidence from modelling US inflation

摘要: Abstract This article explores how inflation persistence relates to the conduct and goals of monetary policy by presenting a new approach modelling US Fed's dual mandate. Our framework fills gap in pre-existing models more flexibly accounting for diverse dynamic properties shocks. Estimating Phillips Curve model augmented with volatilities expectations, we find that degree monthly is time variant since World War II. Variations continue be observed regardless absolute level extent trade-off between unemployment. We demonstrate varies line expectations formed memories past inflation. supports case flexible at times, as 1980s or especially present decade, when persistent.