chapter  7
20 Pages

Two- and-a- half centuries of British interest rates, monetary regimes and inflation TeR eNC e C . MIllS A ND GeOFFR eY WOOD

Note the absence of autocorrelation and the highly significant positive coefficient on inflation (figures in parentheses are standard errors). In contrast, the corresponding regression for the remainder of the sample (1750-1964, 1998-2006) yielded

Rt t= ( )

+ ( )

3 724

0 058 0 083 0 085

.