Journal article

Inflation targeting and regional inflation persistence: Evidence from Korea


Authors listTillmann, P

Publication year2013

Pages147-161

JournalPacific Economic Review

Volume number18

Issue number2

Open access statusGreen

DOI Linkhttps://doi.org/10.1111/1468-0106.12016

PublisherWiley


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.




Citation Styles

Harvard Citation styleTillmann, 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 Citation styleTillmann, 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


Last updated on 2025-10-06 at 10:12