Another look at global disinflation

Toshitaka Sekine

No 283, BIS Working Papers from Bank for International Settlements

Abstract: This paper highlights relative price adjustments taking place in the global economy as important sources of the lower levels of inflation rates observed in the recent decades. Using a markup model, it shows substantial effects from declines in wage costs and import prices relative to consumer prices. Out of the 5 percentage point decline in the inflation rates in eight OECD countries from 1970-1989 to 1990-2006, global shocks to two relative prices account for more than 1.5 percentage points, while a monetary policy shock accounts for another 1 percentage point.

Keywords: markup model; open-economy New Keynesian Phillips curve; dynamic factor model; global disinflation (search for similar items in EconPapers)
Pages: 36 pages
Date: 2009-05
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Related works:
Chapter: Another Look at Global Disinflation (2009)
Journal Article: Another look at global disinflation (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:283

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