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Models of Inflation in the United Kingdom: an Evaluation

Published online by Cambridge University Press:  26 March 2020

S.G.B. Henry ,
M.C. Sawyer  and
P. Smith
S.G.B. Henry
Affiliation:
University College London
M.C. Sawyer
Affiliation:
University College London
P. Smith
Affiliation:
Southampton University
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Abstract

In this article re-estimates are made of some of the main econometric models of inflation that have been proposed for the UK. Primarily these are wage inflation models, though reference is also made in the article to price equations. Estimates for each model are provided for a number of different post-war samples to investigate the reliability of each model and their adequacy in the light of recent high rates of inflation. The results for most of the models we consider are generally negative, except a wage inflation equation based on the hypothesis of a target rate of increase in real net earnings desired by workers which shows a great deal of consistency over the different sample periods.

Type
Articles
Information
National Institute Economic Review , Volume 77 , August 1976 , pp. 60 - 71
Copyright
Copyright © 1976 National Institute of Economic and Social Research

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A correction has been issued for this article:

Errata: August Review, 1976