01959cas a2200253 a 4500 AALejournalIMF009099 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451864199 1018-5941 BD-DhAAL BD-DhAAL Balakrishnan, Ravi. U.S. Inflation Dynamics : What Drives Them Over Different Frequencies? / Ravi Balakrishnan, Sam Ouliaris. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper aims to improve the understanding of U.S. inflation dynamics by separating out structural from cyclical effects using frequency domain techniques. Most empirical studies of inflation dynamics do not distinguish between secular and cyclical movements, and we show that such a distinction is critical. In particular, we study traditional Phillips curve (TPC) and new Keynesian Phillips curve (NKPC) models of inflation, and conclude that the long-run secular decline in inflation cannot be explained in terms of changes in external trade and global factor markets. These variables tend to impact inflation primarily over the business cycle. We infer that the secular decline in inflation may well reflect improved monetary policy credibility and, thus, maintaining low inflation in the long run is closely linked to anchored inflation expectations. Mode of access: Internet Ouliaris, Sam. IMF Working Papers; Working Paper ; No. 2006/159 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/159/001.2006.issue-159-en.xml IMF e-Library