Why Does Inflation Differ Across Countries?

38 Pages Posted: 27 Apr 1998 Last revised: 1 Oct 2010

See all articles by Marta Campillo

Marta Campillo

affiliation not provided to SSRN

Jeffrey A. Miron

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: April 1996

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.

Suggested Citation

Campillo, Marta and Miron, Jeffrey A., Why Does Inflation Differ Across Countries? (April 1996). NBER Working Paper No. w5540. Available at SSRN: https://ssrn.com/abstract=3195

Marta Campillo

affiliation not provided to SSRN

Jeffrey A. Miron (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
80
Abstract Views
2,162
rank
307,712
PlumX Metrics