Journalartikel

Jahr der Veröffentlichung: 2013

Seiten: 147-161

Zeitschrift: Pacific Economic Review

Bandnummer: 18

Heftnummer: 2

Open Access Status: Green

DOI Link: https://doi.org/10.1111/1468-0106.12016

Verlag: Wiley

Abstract: 

The adoption of a credible monetary policy regime such as inflation targeting is known to reduce the persistence of inflation fluctuations. This conclusion, however, is typically derived from aggregate inflation or sectoral inflation rates, not from regional inflation data. This paper studies the regional dimension of inflation targeting; that is, the consequences of inflation targeting for regional inflation persistence. Based on data for Korean cities and provinces it is shown that the adoption of inflation targeting leads: (i) to a fall in inflation persistence at the regional level; and (ii) to a reduction in the cross-regional heterogeneity in inflation persistence. A factor model lends further support to the role of the common component, and, hence, monetary policy, for regional inflation persistence.

Harvard-Zitierstil: Tillmann, P. (2013) Inflation targeting and regional inflation persistence: Evidence from Korea, Pacific Economic Review, 18(2), pp. 147-161. https://doi.org/10.1111/1468-0106.12016

APA-Zitierstil: Tillmann, P. (2013). Inflation targeting and regional inflation persistence: Evidence from Korea. Pacific Economic Review. 18(2), 147-161. https://doi.org/10.1111/1468-0106.12016