- Understanding UK inflation : the role of openness

  title={- Understanding UK inflation : the role of openness},
  author={Ravi Balakrishnan and J. David L{\'o}pez-Salido},
In this paper, inflation dynamics in the United Kingdom are re-examined. Standard specifications of traditional Phillips curves have tended to overpredict inflation in the recent low inflation, low unemployment era in the United States, the United Kingdom and the euro area. This has stimulated the ‘New Phillips Curve’ approach, which has had success for the United States and the euro area, both less open economies than the United Kingdom. The paper is divided into two parts. First, the… CONTINUE READING

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