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dc.contributor.authorMiles, William
dc.contributor.authorVijverberg, Chu-Ping C.
dc.date.accessioned2012-02-20T19:12:57Z
dc.date.available2012-02-20T19:12:57Z
dc.date.issued2011-12
dc.identifier.citationMiles, W., and C.P. Vijverberg. 2011. "Formal targets, central bank independence and inflation dynamics in the UK: A Markov-Switching approach". Journal of Macroeconomics. 33 (4): 644-655.en_US
dc.identifier.issn0164-0704
dc.identifier.urihttp://dx.doi.org/10.1016/j.jmacro.2011.04.003
dc.identifier.urihttp://hdl.handle.net/10057/4479
dc.descriptionClick on the DOI link below to access the article (may not be free).en_US
dc.description.abstractWe examine inflation and uncertainty in the UK with a version of the Markov Switching model, which allows for changes in the variance as well as in the mean and persistence of a series. We find that the UK's attempts at exchange rate pegs in the form of shadowing the deutschmark and entering the ERM were ineffective, and in the latter case counterproductive in lowering inflation uncertainty. The 1981 budget, however, greatly lowered uncertainty, and the adoption of a formal inflation target also had a palpable, negative impact on inflation uncertainty. As a suggestive exercise, we examine inflation uncertainty in the US, and find that, over 2005-2008, in the absence of an inflation target, uncertainty rose in the US, while uncertainty remained low in the UK over this period of rising commodity prices and financial turmoil.en_US
dc.language.isoen_USen_US
dc.publisherElsevieren_US
dc.relation.ispartofseriesJournal of Macroeconomics;2011:, v.33, no.4
dc.subjectCentral banks and their policiesen_US
dc.subjectInflationen_US
dc.subjectMonetary policyen_US
dc.titleFormal targets, central bank independence and inflation dynamics in the UK: A Markov-Switching approachen_US
dc.typeArticleen_US
dc.description.versionPeer reviewed article
dc.rights.holderCopyright © 2011, Elsevier


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