Download This PaperComments on 'What Drives Inflation in Advanced and Emerging Market Economies?'
3 Pages Posted: 17 Apr 2020
Date Written: March 25, 2020
Abstract
The paper by Kamber, Mohanty and Morley (KMM hereafter) is a carefully executed empirical investigation of the determinants of inflation in a broad sample of advanced and emerging market economies.
A number of recent multi-country empirical studies of inflation dynamics have used estimated Phillips curve relationships to highlight changes in parameters following the Great Financial Crisis (GFC).
KMM challenge previous findings based on panel regression methods, arguing that it is critically important to account for heterogeneity across economies and over time in assessing the importance of each determinant of inflation. They suggest that key findings in the literature using panel regression estimates are not robust. The reason is heterogeneity across economies and, to some extent, the use, in previous studies, of a single breakpoint in 2007.
Full Publication: Inflation Dynamics in Asia and the Pacific
Suggested Citation: Suggested Citation
Hans Genberg (Contact Author)
Asia School of Business ( email )
Kuala Lumpur, MA 50480
Malaysia
HOME PAGE: http://https://asb.edu.my/