Economics at your fingertips  

What is the Globalisation of Inflation?

Gantungalag Altansukh, Ralf Becker, George Bratsiotis () and Denise Osborn ()

EconStor Open Access Articles and Book Chapters, 2017, 1-27

Abstract: This paper studies the globalisation of CPI inflation by analysing core, energy and food components, testing for structural breaks in the relationships between domestic inflation and a corresponding country-specific foreign inflation series at the monthly frequency for OECD countries.The iterative methodology employed separates coefficient and variance breaks, while also taking account of outliers. We find that the overall pattern of globalisation in aggregate inflation is largely driven by convergence of the mean levels of the core component from the early 1990s,compatible with the introduction of inflation targeting in many countries of our sample.There is less evidence of increased synchronisation of short run movements in core than aggregate inflation, but an increased role for short run foreign energy inflation often contributes to the globalisation effect.

Keywords: International inflation; Globalisation; Co-movement; Core inflation; Multiple structural breaks (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Journal Article: What is the globalisation of inflation? (2017) Downloads
Working Paper: What is the Globalisation of Inflation? (2016) Downloads
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:

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

Page updated 2021-12-25
Handle: RePEc:zbw:espost:171324