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U.K. Inflation and Relative Prices over the Last Decade: How Important was Globalization?

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  • Mr. Benjamin L Hunt

Abstract

In this paper, the IMF's new Global Economy Model (GEM) is used to estimate the relative importance of a number of factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro Area and the United States. The simulation results indicate that while the direct effect of globalization has had a larger effect in the United Kingdom than in either the United States or the Euro Area, it explains only a portion of the developments and U.K. specific factors played an important role.

Suggested Citation

  • Mr. Benjamin L Hunt, 2007. "U.K. Inflation and Relative Prices over the Last Decade: How Important was Globalization?," IMF Working Papers 2007/208, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/208
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    References listed on IDEAS

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    Cited by:

    1. International Monetary Fund, 2008. "New Zealand: Selected Issues," IMF Staff Country Reports 2008/164, International Monetary Fund.
    2. Opeoluwa Adeniyi Adeosun & Mosab I. Tabash & Xuan Vinh Vo & Suhaib Anagreh, 2023. "Uncertainty measures and inflation dynamics in selected global players: a wavelet approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3389-3424, August.
    3. Andersson, Fredrik N. G., 2008. "Core Inflation - Why the Federal Reserve Got it Wrong," Working Papers 2008:19, Lund University, Department of Economics.
    4. Mr. Benjamin L Hunt, 2009. "The Declining Importance of Tradable Goods Manufacturing in Australia and New Zealand: How Much Can Growth Theory Explain?," IMF Working Papers 2009/016, International Monetary Fund.

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