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In fact, if they ignored it, they would simply be accommodating a permanent inflation shock to the system, which is what they did in the inflationary 1970s.
No less typically, articles have also been lamenting what Le Monde last week called the "permanent inflation" of new books every fall.
As pointed out by Beck et al. (2009), nominal rigidities are generally associated with imperfect competition in the goods and labor markets leading to a high degree of inflation persistence, which can be responsible for permanent inflation differentials.
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It might be worth sacrificing a permanent increase in inflation for a temporary cut in unemployment--if the increase in inflation were tiny, and if the drop in unemployment were big and prolonged (albeit not permanent).
The Federal Reserve chairman, Ben S. Bernanke, testifying to the Senate Banking Committee in Washington, said the surge in oil probably would not cause a permanent increase in inflation and repeated that interest rates were likely to stay low.
Central banks around the world are trying to gauge whether the current oil price spike will have "a permanent effect on inflation, or if it's just a one-off shock," Mr. Draghi said.
The economists' model implies that less than 1% of a temporary price surge is translated into a permanent rise in inflation today, compared with 60% three decades ago.That may give today's policymakers more leeway than their predecessors enjoyed.
Viewed from outside the country, there are few signs of serious weakness in the American economy -- just clear evidence that it has come back down to earth from a period of very fast growth before there could be real damage from a permanent rise in inflation.
By taking a nonlinear relationship into account, Cunado and Perez de Gracia (2005) report that oil prices have permanent effects on inflation and asymmetric effects on the GNP in European countries.
The key is the decomposition of the observed series into a common and idiosyncratic component, and in turn the determination of their degree of integration, which enables us to establish whether idiosyncratic and/or common shocks or policies can have transitory or permanent effects on inflation, depending on the degree of integration of either component.
We need a permanent end to inflation-busting fare rises calculated using an out-of-date formula".
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