The Inflation Process

18 Pages Posted: 2 Dec 2016

See all articles by Yavuz Arslan

Yavuz Arslan

Bank for International Settlements (BIS)

Martina Jasova

Columbia University, Barnard College - Department of Economics

Előd Takáts

Bank for International Settlements (BIS)

Date Written: November 2016

Abstract

This paper documents three major and favourable inflation dynamics in emerging market economies (EMEs). First, the level of inflation has moderated in EMEs and has been broadly stable since the early 2000s. Second, inflation persistence has declined over the past decade. Third, EME exchange rate pass-through, both short-term and long-term, has also declined after the financial crisis. In addition, the paper shows that the role of global factors on inflation is larger for EMEs that are more open to trade.

Full Publication: Inflation Mechanisms, Expectations and Monetary Policy

Keywords: Inflation, exchange rate pass-through

JEL Classification: E31, E58, F31

Suggested Citation

Arslan, Yavuz and Jasova, Martina and Takáts, Előd, The Inflation Process (November 2016). BIS Paper No. 89c. Available at SSRN: https://ssrn.com/abstract=2870910

Yavuz Arslan (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Martina Jasova

Columbia University, Barnard College - Department of Economics ( email )

3009 Broadway
New York, NY 10027
United States

Előd Takáts

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

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