Assessing Inflation Persistence: Micro Evidence on an Inflation Targeting Economy

Ian Babetskii, Fabrizio Coricelli and Roman Horvath
Additional contact information
Ian Babetskii: CERGE-EI - UK - Univerzita Karlova [Praha, Česká republika] = Charles University [Prague, Czech Republic]
Authors registered in the RePEc Author Service: Jan Babecký

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: The paper provides an empirical analysis of inflation persistence in one of the inflation targeting countries, the Czech Republic, using 412 detailed product-level consumer price indexes underlying the consumer basket over the period from 1994:M1 to 2005:M12. Subject to various sensitivity tests, the authors' results suggest that raw goods and non-durables, followed by services, display smaller inflation persistence than durables and processed goods. Inflation seems to be somewhat less persistent after the adoption of inflation targeting in 1998. There is also evidence for aggregation bias, that is, aggregate inflation is found to be more persistent than the underlying detailed components. Price dispersion, as a proxy for the degree of competition, is found to be negatively related to inflation persistence, suggesting that competition is not conducive to reducing persistence.

Keywords: inflation (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published in Czech Journal of Economics and Finance, 2009, 59 (2), pp.102-127

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Assessing Inflation Persistence: Micro Evidence on an Inflation Targeting Economy (2009)
Working Paper: Assessing Inflation Persistence: Micro Evidence on an Inflation Targeting Economy (2009)
Working Paper: Assessing Inflation Persistence: Micro Evidence on an Inflation Targeting Economy (2009)
Working Paper: Assessing Inflation Persistence: Micro Evidence on an Inflation Targeting Economy (2008)
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:hal:cesptp:hal-00643340

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().