Monetary policy regime influences inflation persistence, shaping economic stability.
The article explores why inflation tends to stick around for a while in the economy. It looks at different ways to measure this persistence and how it has changed over time. The researchers also investigate the reasons behind this persistence, like how monetary policy affects it. They find that imperfect information, learning, and trend inflation all play a role in keeping inflation going. Overall, the studies on detailed price data confirm that inflation likes to hang around for longer than we might expect.