EconPapers    
Economics at your fingertips  
 

International Co-movements of Inflation, 1851-1913

Stefan Gerlach and Rebecca Stuart ()

No 21-02, IRENE Working Papers from IRENE Institute of Economic Research

Abstract: We study co-movements of inflation in a group of 15 countries before and during the classical Gold Standard by fitting a generalisation of the Ciccarelli-Mojon (2010) model on annual data spanning 1851-1913. We find that international inflation functions as an "attractor" for domestic inflation rates. The cross-sectional dispersion of inflation declined gradually over the sample and Bai-Perron tests for structural breaks at unknown points in time suggest that there are breaks in six of reduced-form inflation equations. However, sub-sample estimates indicate that the overall finding that international inflation is an important influence on domestic inflation.

Keywords: international inflation; Gold standard; principal components; factor analysis. (search for similar items in EconPapers)
JEL-codes: E31 F40 N10 (search for similar items in EconPapers)
Pages: 31 pages.
Date: 2021-03
New Economics Papers: this item is included in nep-his, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www5.unine.ch/RePEc/ftp/irn/pdfs/WP21-02.pdf (application/pdf)

Related works:
Working Paper: International Co-movements of Inflation, 1851-1913 (2021) 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: https://EconPapers.repec.org/RePEc:irn:wpaper:21-02

Access Statistics for this paper

More papers in IRENE Working Papers from IRENE Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Sylvain Weber ().

 
Page updated 2021-12-04
Handle: RePEc:irn:wpaper:21-02