Global Inflation Synchronization

Jongrim Ha, Ayhan Kose and Franziska Ohnsorge

No 8768, Policy Research Working Paper Series from The World Bank

Abstract: The paper studies the extent of global inflation synchronization using a dynamic factor model in a large set of countries over a half century. The authors'methodology allows them to account for differences across groups of countries (advanced economies and emerging market and developing economies) and to analyze commonalities in inflation synchronization across a wide range of inflation measures. The paper reports three major results. First, inflation movements have become increasingly synchronized internationally over time: a common global factor has accounted for about 22 percent of variation in national inflation rates since 2001. Second, inflation synchronization has also become more broad-based: while it was previously much more pronounced among advanced economies than among emerging market and developing economies, it has become substantial in both groups over the past two decades. In addition, inflation synchronization has become significant across all inflation measures since 2001, whereas it was previously prominent only for inflation measures that included mostly tradable goods.

Date: 2019-03-07
New Economics Papers: this item is included in nep-mon and nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://documents.worldbank.org/curated/en/733211551994244422/pdf/WPS8768.pdf (application/pdf)

Related works:
Working Paper: Global Inflation Synchronization (2019)
Working Paper: Global inflation synchronization (2019)
Working Paper: Global Inflation Synchronization (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:8768

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().