Arbeitspapier

Domestic and Global Output Gaps as Inflation Drivers: What Does the Phillips Curve Tell?

We study how domestic and global output gaps affect CPI inflation. We use a New-Keynesian Phillips curve framework which controls for nonlinear exchange rate movements for a panel of 26 advanced and 22 emerging economies covering the 1994Q1-2017Q4 period. We find broadly that both global and domestic output gaps are significant drivers of inflation both in the pre-crisis (1994-2008) and post-crisis (2008-2017) periods. Furthermore, after the crisis, in advanced economies the effect of the domestic output gap declines, while in emerging economies the effect of the global output gap declines. The paper demonstrates the usefulness of the New Keynesian Phillips curve in identifying the impact of global and domestic output gaps on inflation.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 7337

Klassifikation
Wirtschaft
Price Level; Inflation; Deflation
Central Banks and Their Policies
Economic Impacts of Globalization: Macroeconomic Impacts
Thema
output gaps
global factors
inflation

Ereignis
Geistige Schöpfung
(wer)
Jašová, Martina
Moessner, Richhild
Takáts, Előd
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Jašová, Martina
  • Moessner, Richhild
  • Takáts, Előd
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2018

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