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Global inflation dynamics in the post-crisis period: What explains the puzzles?

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  • Friedrich, Christian

Abstract

Using a factor model, I estimate a global Phillips curve for 25 advanced countries over 1995Q1–2013Q3. I find that the inclusion of household inflation expectations in the Phillips curve helps to explain puzzling global inflation dynamics during the post-crisis period.

Suggested Citation

  • Friedrich, Christian, 2016. "Global inflation dynamics in the post-crisis period: What explains the puzzles?," Economics Letters, Elsevier, vol. 142(C), pages 31-34.
    • Handle: RePEc:eee:ecolet:v:142:y:2016:i:c:p:31-34
    DOI: 10.1016/j.econlet.2016.02.032
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    More about this item

    Keywords

    Disinflation; Global Phillips curve; Household inflation expectations;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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