Inflation: Concepts, Evolution, and Correlates

80 Pages Posted: 20 Feb 2019

See all articles by Jongrim Ha

Jongrim Ha

World Bank

Anna Ivanova

International Monetary Fund (IMF) - European Department

Franziska Ohnsorge

World Bank

D. Filiz Unsal

International Monetary Fund (IMF) - Research Department

Date Written: February 13, 2019

Abstract

In the past four to five decades, inflation has fallen around the world, with median annual global consumer price inflation down from a peak of 16.6 percent in 1974 to 2.6 percent in 2017. This decline began in advanced economies in the mid-1980s and in emerging market and developing economies in the mid-1990s. By 2000, global inflation had stabilized at historically low levels. Lower inflation has been accompanied by reduced inflation volatility, especially in advanced economies. This improvement in inflation outcomes has stemmed in large part from structural economic changes, including improved monetary and fiscal policy frameworks as well as international trade and financial liberalization. Lower and more stable inflation has often been associated with better growth and development outcomes, partly by reducing uncertainty, fostering a more efficient allocation of resources, and helping preserve financial stability.

Suggested Citation

Ha, Jongrim and Ivanova, Anna and Ohnsorge, Franziska and Unsal, D. Filiz, Inflation: Concepts, Evolution, and Correlates (February 13, 2019). World Bank Policy Research Working Paper No. 8738. Available at SSRN: https://ssrn.com/abstract=3335611

Jongrim Ha (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Anna Ivanova

International Monetary Fund (IMF) - European Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Franziska Ohnsorge

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

D. Filiz Unsal

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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