| Description |
1 online resource (27 pages) |
| Contents |
Cover; Contents; 1 Introduction; 2 Background; 2.1 Inflation Performance in Emerging Markets; 2.2 The Globalization of Inflation Hypothesis; 2.3 Institutional Changes; 3 The Role of Domestic and Global Factors: An Empirical Assessment; 3.1 An Augmented Phillips Curve Framework; 3.1.1 Empirical Strategy; 3.1.2 Estimation Results; 3.2 Contributions to Inflation Deviations from ""Target; 3.3 Contributions to Inflation Variation; 3.4 Robustness Exercises; 3.4.1 Global Factors; 3.4.2 Extensions; 3.4.3 Inflation Expectation Horizons; 4 Conclusions; References; A Data Sources; List of Figures |
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1 Disinflation in Emerging Markets2 Share of Countries with Double-Digit Inflation; 3 Inflation Dynamics; 4 Integration of Emerging Markets into Global Markets; 5 Adoption of Policy Frameworks; 6 Contributions to Deviation of Core Inflation from Target, by Subperiod; 7 Common Driver of Core Inflation; 8 Contributions to Deviations of Core Inflation from Target, by Country; 9 Contributions to Inflation Variation, by Country; 10 Contribution of Domestic and Global Factors to Inflation Variation, by Country; List of Tables |
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1 Hybrid Phillips Curve Estimation, Specifications Augmented for External Factor2 Hybrid Phillips Curve Estimation, Alternative Specifications; 3 Hybrid Phillips Curve Estimation, Extensions; 4 Hybrid Phillips Curve Estimation, Varying Ination Expectation Horizon; A.1 Data sources |
| Summary |
Following a period of disinflation during the 1990s and early 2000s, inflation in emerging markets has remained remarkably low and stable. Was this related to a global disinflation environment triggered by China's integration into world trade and the broader globalization in these economies, or to better domestic policies? In this paper, we review the inflation performance in a sample of 19 large emerging markets in the past couple of decades and quantify the impact of domestic and global factors in determining inflation. We document that the level, volatility, and persistence of inflation declined significantly, albeit not uniformly. Our results suggest that longer-term inflation expectations, linked to domestic factors, were the main determinant of inflation. External factors played a considerably smaller role. The results are a useful piece of evidence as emerging markets craft their monetary policies to navigate the future shift in global financial conditions |
| Notes |
Print version record |
| Subject |
Inflation (Finance) -- Developing countries
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Inflation (Finance)
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Developing countries
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| Form |
Electronic book
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| Author |
Caselli, Francesca G., author.
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Grigoli, Francesco, author.
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| ISBN |
148438427X |
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9781484381595 |
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1484381599 |
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9781484384275 |
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