Why Does Inflation Differ Across Countries?

Marta Campillo and Jeffrey Miron ()

No 5540, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper attempts to explain the differences in inflation performance across countries. Earlier research has examined this topic, but it has considered only some of the factors that might be empirically important determinants of inflation rates. We consider the distaste for inflation, optimal tax considerations, time consistency issues, distortionary non-inflation policies and other factors that might be empirically important determinants of inflation performance. Overall, the results suggest that institutional arrangements - central bank independence or exchange rate mechanisms - are relatively unimportant determinants of inflation performance, while economic fundamentals - openness and optimal tax considerations - are relatively important determinants.

JEL-codes: E31 E58 (search for similar items in EconPapers)
Date: 1996-04
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (70)

Published as Reducing Inflation: Motivation and Strategy, C. Romer and D. Romer, eds.(Chicago: University of Chicago Press, 1997)
Published as Why Does Inflation Differ across Countries? , Marta Campillo, Jeffrey A. Miron. in Reducing Inflation: Motivation and Strategy , Romer and Romer. 1997

Downloads: (external link)
http://www.nber.org/papers/w5540.pdf (application/pdf)

Related works:
Chapter: Why Does Inflation Differ across Countries? (1997)
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:nbr:nberwo:5540

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w5540

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().