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Gul and Pesendorfer have a point: neuroeconomics doesn't tell us whether the neo-Keynesian or the neoclassical model of inflation is correct.
Finally, we discuss how this procedure and ASPIC could be used to determine the best model of inflation by means of Bayesian inference.
The Bank has not missed the target range since independence in 1997 and Gordon Brown's decision then to move to this model of inflation control has been widely praised.
According to Planck's measurements, those fluctuations so far fit the predictions of the simplest model of inflation, invented by Andrei Linde of Stanford, to a T. Dr. Tegmark of M.I.T. said, "We're homing in on the simplest model".
That would help in nailing down a precise model of inflation.
The contribution of gravitational waves left over from inflation to the B-mode polarization of the Cosmic Microwave background has a known shape, but its amplitude is dependent on the specific model of inflation.
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The new set of data is precise enough to differentiate between various proposed models of inflation.
After all, different models of Inflation could have produced results consistent with many different observations.
But I don't think we have very good models of inflation, particularly in the short run.
Models of inflation predict that gravitational waves will source B modes at angular scales of a degree or larger, but they don't predict the amplitude, which we parametrize with the tensor-to-scalar ratio, r.
This makes a nonsense of traditional economic models of inflation, which virtually ignore globalisation and assume that companies set prices by adding a mark-up over unit costs, with the size of the margin depending largely on the amount of slack in the economy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com