This paper studies the role of global factors in causing common movements in consumer price inflation, with particular … collected from national and international sources. Global factors explain a large share of the variance of national inflation …

This paper studies the role of global factors in causing common movements in consumer price inflation, with particular … collected from national and international sources. Global factors explain a large share of the variance of national inflation …

Two strands of the literature suggest that PPI inflation, rather than CPI inflation, should be the targeting variable … in a monetary policy rule. The distinction between these two rules would only be important if the two inflation indices … do not co-move strongly. The first contribution of this paper is to document that the two inflation gauges did co …