Analysing inflation for Germany in a non-linear framework: the smooth transition regression approachKavkler, Alenka (Avtor) Festić, Mejra (Avtor) This paper studies a well-known monetary model of the inflation process. The monetary approach to inflation control is investigated by employing an equation describing the monetary system augmented by a Phillips curve and the equation from Okun's law. This simple three-equation model is specified in the non-linear framework with the use of the smooth transition regression. The coefficients in a smooth transition regression model are assumed to be continuous functions of a properly chosen transition variable. The resulting non-linear model thus captures the structural changes in the relationships between the observed economic variables. From the inspection of dynamic properties, asymmetric policy reactions can be derived.20082012-05-28 09:06:49Neznano23578UDK: 51-7COBISS_ID: 9715484ISSN pri članku: Y505-480XNUK URN: URN:SI:UM:DK:CS8MAWQ4sl