Showing 1 - 10 of 462
This paper decomposes the time-varying effect of exogenous exchange rate shocks on euro area countries in ation into country-specific (idiosyncratic) and region-wide (common) components. To do so, we propose a exible empirical framework based on dynamic factor models subject to drifting...
Persistent link: https://www.econbiz.de/10012181317
The link between US labor cost and price inflation has weakened notably over the past three decades. In this paper we … economy of late: (i) improved anchoring of inflation expectations; (ii) the changing constellation of shocks hitting the … economy; (iii) increased trade integration and (iv) rising firm market power. We find that the improved anchoring of inflation …
Persistent link: https://www.econbiz.de/10012603076
This paper documents, for the first time in a systematic manner, the link between labor cost and price inflation in the … and price inflation in the four major economies of the euro area and across the three main sectors. The dynamic …. Our results show that it is more likely that labor costs are passed on to price inflation with demand shocks than with …
Persistent link: https://www.econbiz.de/10011975511
through to all components of euro area inflation - producer prices, wages and core inflation, which has implications for …
Persistent link: https://www.econbiz.de/10014490358
This paper quantifies the pass-through of a US dollar appreciation on trade variables and domestic financial conditions in a panel of 34 countries. Pass-through coefficients are highly shock-dependent: if the appreciation is driven by a US expansionary shock, the positive effects of stronger...
Persistent link: https://www.econbiz.de/10013285964
We examine the global dimension of inflation i n 24 OECD countries between 1980 and 2007 in a traditional Phillips … global forces to affect inflation through (the common part of) domestic demand and supply conditions. Our most important … result is that the common component of changes in unit labor costs has a notable impact of inflation. We also find evidence …
Persistent link: https://www.econbiz.de/10003831786
Inflation volatility is clearly important for structural analysis, forecasting and policy purposes, yet it is often …
Persistent link: https://www.econbiz.de/10012249671
How long does it take for exchange rate changes to pass through into in ation? Does it make a difference whether the exchange rate depreciates or appreciates? Do relatively large exchange rate changes entail more exchange rate pass-through? In this paper, we examine possible non-linearities in...
Persistent link: https://www.econbiz.de/10012150116
Trend inflation estimates for 12 of the largest Asian economies over 1995-2018 offer important insights on inflation … dynamics and inflation expectations. The disinflationary shocks that hit the region since 2014 were partly transitory, but … their effects have been different depending on the behaviour of trend inflation in each country. Countries with relatively …
Persistent link: https://www.econbiz.de/10012132591
In this paper we analyse the exchange rate pass-through (ERPT) in the euro area as a whole and for four euro area members - Germany, France, Italy and Spain. For that purpose we use Bayesian VARs with identification based on a combination of zero and sign restrictions. Our results emphasize that...
Persistent link: https://www.econbiz.de/10011636797