Chapter 8 introduces the modelization of prices, inventories, profits etc. without an explicit model, as different models incorporating inflations will be presented in Chapter 9.
However, the reader may be interested to know which model was used to derive Figure 8.1 on page 269, which shows the possibility of a temporary increase in inflation following a drop in autonomous demand.
The model used is a modified version of model DIS, and can be downloaded below.
Download: gl08 (Eviews 5 to 8) or gl08_v4 (Eviews 4.1)
