EconPapers    
Economics at your fingertips  
 

International Great Inflation and Common Monetary Policy

Jacek Suda and Anastasia Zervou

No 20160513_001, Working Papers from Texas A&M University, Department of Economics

Abstract: We study whether monetary authorities in the G7 countries were changing their responses to inflation in a similar manner during and following the Great Inflation era. We find that the common to the G7 countries inflation pattern during the Great Inflation period could be associated with a common pattern in the monetary policy response to inflation: we find that until the early 1980s monetary authorities in the G7 countries responded mildly to inflation, systematically fought it throughout the 1980s and lessened again their response during the 2000s. The estimated Taylor rule coefficients on inflation are cointegrated, implying the existence of a long run relation- ship in the responses to inflation during and after the Great Inflation period. At the same time, principal component analysis of the residuals of the estimated Taylor rules indicates that the shocks’ structure cannot account enough for the monetary policies’ comovements. We interpret these findings as suggestive of common monetary policy patterns.

Keywords: International Monetary Policy; International Great Inflation; Time Varying Parameter Model (search for similar items in EconPapers)
JEL-codes: C22 E52 E58 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2016-05-13
New Economics Papers: this item is included in nep-his, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://pvsessions.tamu.edu/RePEc/zervougreatinflation.pdf First version, 2016 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to pvsessions.tamu.edu:443 (No such host is known. )

Related works:
Journal Article: INTERNATIONAL GREAT INFLATION AND COMMON MONETARY POLICY (2018) 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:txm:wpaper:20160513_001

Access Statistics for this paper

More papers in Working Papers from Texas A&M University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Pedro Bento (pbento@tamu.edu).

 
Page updated 2024-12-29
Handle: RePEc:txm:wpaper:20160513_001