Cross-country Variation in the Anchoring of Inflation Expectations - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Cross-country Variation in the Anchoring of Inflation Expectations write by Jonathan Scott Davis. This book was released on 2013. Cross-country Variation in the Anchoring of Inflation Expectations available in PDF, EPUB and Kindle. This paper develops a method for measuring the anchoring of long-run inflation expectations that does not require estimates of long-run inflation expectations. Such estimates exist for only a few developed economies, and even then only a short time series is available. By not requiring estimates of long-term inflation expectations, this method is able to measure the anchoring of inflation expectations in sixty-four different developed and developing countries. In addition, with rolling-window estimations we can measure the anchoring of expectations across time within a country, and thus we can observe how inflation expectations became unanchored in many countries during the 1970s. Then we can observe how, through means like inflation targeting and monetary unification, these expectations were re-anchored during the 1980s, 1990s, and 2000s.
Expectations' Anchoring and Inflation Persistence
Expectations' Anchoring and Inflation Persistence - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Expectations' Anchoring and Inflation Persistence write by Mr.Rudolfs Bems. This book was released on 2018-12-11. Expectations' Anchoring and Inflation Persistence available in PDF, EPUB and Kindle. 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.
Inflation Expectations
Inflation Expectations - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inflation Expectations write by Peter J. N. Sinclair. This book was released on 2009-12-16. Inflation Expectations available in PDF, EPUB and Kindle. 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.
Inflation Targeting and the Anchoring of Inflation Expectations
Inflation Targeting and the Anchoring of Inflation Expectations - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inflation Targeting and the Anchoring of Inflation Expectations write by J. Scott Davis. This book was released on 2014. Inflation Targeting and the Anchoring of Inflation Expectations available in PDF, EPUB and Kindle.
Inflation in Emerging and Developing Economies
Inflation in Emerging and Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inflation in Emerging and Developing Economies write by Jongrim Ha. This book was released on 2019-02-24. Inflation in Emerging and Developing Economies available in PDF, EPUB and Kindle. This is the first comprehensive study in the context of EMDEs that covers, in one consistent framework, the evolution and global and domestic drivers of inflation, the role of expectations, exchange rate pass-through and policy implications. In addition, the report analyzes inflation and monetary policy related challenges in LICs. The report documents three major findings: In First, EMDE disinflation over the past four decades was to a significant degree a result of favorable external developments, pointing to the risk of rising EMDE inflation if global inflation were to increase. In particular, the decline in EMDE inflation has been supported by broad-based global disinflation amid rapid international trade and financial integration and the disruption caused by the global financial crisis. While domestic factors continue to be the main drivers of short-term movements in EMDE inflation, the role of global factors has risen by one-half between the 1970s and the 2000s. On average, global shocks, especially oil price swings and global demand shocks have accounted for more than one-quarter of domestic inflation variatio--and more in countries with stronger global linkages and greater reliance on commodity imports. In LICs, global food and energy price shocks accounted for another 12 percent of core inflation variatio--half more than in advanced economies and one-fifth more than in non-LIC EMDEs. Second, inflation expectations continue to be less well-anchored in EMDEs than in advanced economies, although a move to inflation targeting and better fiscal frameworks has helped strengthen monetary policy credibility. Lower monetary policy credibility and exchange rate flexibility have also been associated with higher pass-through of exchange rate shocks into domestic inflation in the event of global shocks, which have accounted for half of EMDE exchange rate variation. Third, in part because of poorly anchored inflation expectations, the transmission of global commodity price shocks to domestic LIC inflation (combined with unintended consequences of other government policies) can have material implications for poverty: the global food price spikes in 2010-11 tipped roughly 8 million people into poverty.
