Inflation and the Dispersion of Relative Prices: A Case for 4 % Solution
Sartaj Rasool Rather (),
Raja Sethu Durai and
M Ramachandran ()
Australian Economic Papers, 2018, vol. 57, issue 1, 81-91
Unlike earlier literature that documented positive association between inflation and the dispersion of relative prices over time, the empirical evidence from this study suggests that the relative price dispersion increases in response to the deviation of inflation from certain threshold/target level in either direction rather than inflation per se. The striking feature of the empirical evidence from United States and Japan is that the inflation rate at which the dispersion of relative prices is minimised turn out to be 4%; hence, supporting the proposal of 4% inflation target for both the countries.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:57:y:2018:i:1:p:81-91
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X
Access Statistics for this article
Australian Economic Papers is currently edited by Daniel Leonard
More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().