On the Dynamics of International Ination Giovanni Caggiano University of Padua Efrem Castelnuovo University of Padua March 2011 Abstract We investigate the dynamic properties of ination in 20 OECD countries with a novel approach based on the AutoCorrelation Function. We nd evidence in favor of long memory and nonlinearity. Linear autoregressive models are shown to be misspecied. JEL classication: E10, E50, E31, E52, E58, C22. Keywords: Heterogeneity, aggregation, long-memory, ination dynamics. We thank Eric Maskin (Editor) and an anonymous referee for useful comments. All remaining errors are ours. Corresponding author : Efrem Castelnuovo, Department of Economics, University of Padua, Via del Santo 33, I-35123 Padova (PD). Phone: +39 049 8274257; Fax: +39 049 8274211. E-mail: efrem.castelnuovo@unipd.it. *Manuscript Click here to view linked References