Inflation Persistence in Korea (in Korean)

Tae-Jeong Kim (), Kwangyong Park and Kumhwa Oh ()
Additional contact information
Tae-Jeong Kim: Macroeconomics Team, Economic Research Institute, Bank of Korea
Kumhwa Oh: Personnel & Administration Department (Secondee to IMF)

Economic Analysis (Quarterly), 2012, vol. 18, issue 3, 1-37

Abstract: This paper examines inflation persistence in Korea from various aspects; CPI and the core inflation, their sub-components, and the pass-through effects of import goods. Some international comparisons are presented and the sources for the persistence are analyzed by a vector autoregressive (VAR) model. And the structural changes in the persistence are also investigated thoroughly. Persistence indices were estimated as the sum of autoregressive coefficients by the grid bootstrap method of Hansen (1999). During the period of 2000-2011, the persistence index for the quarterly CPI inflation turned out to be almost 0, suggesting no persistence. On the other hand, the index for the core inflation has been stable since 1990 at the level of 0.6. Meanwhile, the persistences of CPI components show significant differences one another.

Keywords: Inflation Persistence; Inflation Gap; Inflation Targeting (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bok.or.kr/ucms/cmmn/file/fileDown.do?m ... 00001016786&fileSn=1 (application/pdf)

Related works:
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:bok:journl:v:18:y:2012:i:3:p:1-37

Access Statistics for this article

Economic Analysis (Quarterly) is currently edited by Wook Sohn, Hwan-koo Kang and Jaerang Lee

More articles in Economic Analysis (Quarterly) from Economic Research Institute, Bank of Korea Contact information at EDIRC.
Bibliographic data for series maintained by Economic Research Institute ().