Inflation in Low-Income Countries
This paper studies the effects of global and domestic inflation shocks on core price inflation in 105 countries between 1970 and 2016, by using a heterogeneous panel vector-autoregressive model. The methodology allows accounting for differences across groups of countries (advanced economies, emerging markets and developing economies, and low-income countries) and across groups with different country characteristics (such as foreign exchange and monetary policy regimes). The empirical results indicate that most of the variation in inflation among low-income countries over the past decades is accounted for by external shocks. More than half of the variation in core inflation rates among low-income countries is due to global core price shocks, compared with one-eighth in advanced economies. Global food and energy price shocks account for another 13 percent of core inflation variation in low-income countries -- half more than in advanced economies and one-fifth more than in emerging markets and developing economies. This points to challenges in anchoring domestic inflation expectations, which have been most evident among low -- income countries with floating exchange rates, especially in cases where central bank independence has been weak
Year of publication: |
2019
|
---|---|
Authors: | Ha, Jongrim ; Ivanova, Anna ; Montiel, Peter ; Pedroni, Peter |
Publisher: |
2019: World Bank, Washington, DC |
Saved in:
freely available
Extent: | 1 Online-Ressource |
---|---|
Series: | Policy Research Working Paper ; No. 8934 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | English |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012568630
Saved in favorites
Similar items by person
-
Inflation in low-income countries
Ha, Jongrim, (2019)
-
Inflation in low-income countries
Ha, Jongrim, (2019)
-
Inflation in Low-Income Countries
Ha, Jongrim, (2019)
- More ...