Assessing Inflation Persistence
Author : Jan Babecký
Publisher :
Page : 0 pages
File Size : 15,36 MB
Release : 2009
Category : Anti-inflationary policies
ISBN : 9788073431532
Author : Jan Babecký
Publisher :
Page : 0 pages
File Size : 15,36 MB
Release : 2009
Category : Anti-inflationary policies
ISBN : 9788073431532
Author : Jan Babeckij
Publisher :
Page : 44 pages
File Size : 25,74 MB
Release : 2008
Category :
ISBN : 9788073441425
Author : Peter J. N. Sinclair
Publisher : Routledge
Page : 402 pages
File Size : 47,67 MB
Release : 2009-12-16
Category : Business & Economics
ISBN : 1135179778
Inflation is regarded by the many as a menace that damages business and can only make life worse for households. Keeping it low depends critically on ensuring that firms and workers expect it to be low. So expectations of inflation are a key influence on national economic welfare. This collection pulls together a galaxy of world experts (including Roy Batchelor, Richard Curtin and Staffan Linden) on inflation expectations to debate different aspects of the issues involved. The main focus of the volume is on likely inflation developments. A number of factors have led practitioners and academic observers of monetary policy to place increasing emphasis recently on inflation expectations. One is the spread of inflation targeting, invented in New Zealand over 15 years ago, but now encompassing many important economies including Brazil, Canada, Israel and Great Britain. Even more significantly, the European Central Bank, the Bank of Japan and the United States Federal Bank are the leading members of another group of monetary institutions all considering or implementing moves in the same direction. A second is the large reduction in actual inflation that has been observed in most countries over the past decade or so. These considerations underscore the critical – and largely underrecognized - importance of inflation expectations. They emphasize the importance of the issues, and the great need for a volume that offers a clear, systematic treatment of them. This book, under the steely editorship of Peter Sinclair, should prove very important for policy makers and monetary economists alike.
Author : Mr.Rudolfs Bems
Publisher : International Monetary Fund
Page : 31 pages
File Size : 47,48 MB
Release : 2018-12-11
Category : Business & Economics
ISBN : 148439223X
Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the response of consumer prices to terms-of-trade shocks for countries with flexible exchange rates. We find that these shocks have a significant and persistent effect on consumer price inflation when expectations are poorly anchored. By contrast, inflation reacts by less and returns quickly to its pre-shock level when expectations are strongly anchored.
Author : George J. Bratsiotis
Publisher :
Page : pages
File Size : 10,88 MB
Release : 2015
Category :
ISBN :
Author : Pierre-Richard Agénor
Publisher :
Page : 120 pages
File Size : 46,22 MB
Release : 2013
Category : Inflation targeting
ISBN : 9781597821711
Author : Pierre L. Siklos
Publisher :
Page : 51 pages
File Size : 19,64 MB
Release : 2008
Category :
ISBN :
This paper examines the inflation record of 29 inflation and non inflation targeting economies. Both industrial and emerging market economies are considered. Empirical evidence is based on a comparison of actual and forecasted inflation, an econometric analysis that estimates changes in inflation persistence, as well as an estimate of the probability of a breach in the inflation target as a proxy for the fragility of the targeting regime. I find that inflation persistence has fallen in only a handful of emerging market economies. However, the inflation targeting regime is not especially fragile in emerging market economies. As these economies gain experience with inflation targets and respond appropriately to forecast errors generated by the private sector the likelihood of breaches in the target ranges tends to fall.
Author : Giorgio Canarella
Publisher :
Page : pages
File Size : 39,22 MB
Release : 2016
Category :
ISBN :
Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 28 pages
File Size : 27,29 MB
Release : 1988-10-04
Category : Business & Economics
ISBN : 1451952570
The paper considers the merits of rules and discretion for monetary policy when the structure of the macroeconomic model and the probability distributions of disturbances are not well defined. It is argued that when it is costly to delay policy reactions to seldom-experienced shocks until formal algorithmic learning has been accomplished, and when time consistency problems are significant, a mixed strategy that combines a simple verifiable rule with discretion is attractive. The paper also discusses mechanisms for mitigating credibility problems and emphasizes that arguments against various types of simple rules lose their force under a mixed strategy.
Author : Charles T. Carlstrom
Publisher :
Page : 32 pages
File Size : 42,21 MB
Release : 2008
Category :
ISBN :
There is growing evidence that the empirical Phillips curve within the US has changed significantly since the early 1980's. In particular, inflation persistence has declined sharply. The paper demonstrates that this decline is consistent with a standard Dynamic New Keynesian (DNK) model in which: (i) the variability of technology shocks has declined, and (ii) the central bank more aggressively responds to inflation.