U.K. Inflation and Relative Prices over the Last Decade: How Important was Globalization?

Benjamin Hunt

No 2007/208, IMF Working Papers from International Monetary Fund

Abstract: In this paper, the IMF's new Global Economy Model (GEM) is used to estimate the relative importance of a number of factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro Area and the United States. The simulation results indicate that while the direct effect of globalization has had a larger effect in the United Kingdom than in either the United States or the Euro Area, it explains only a portion of the developments and U.K. specific factors played an important role.

Keywords: WP; service price inflation; U.K. consumption bundle; relative price; U.K. distribution; nontradable goods; U.K. economy (search for similar items in EconPapers)
Pages: 28
Date: 2007-08-01
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Citations: View citations in EconPapers (4)

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