Journal article
Authors list: Tillmann, P
Publication year: 2013
Pages: 147-161
Journal: Pacific Economic Review
Volume number: 18
Issue number: 2
Open access status: Green
DOI Link: https://doi.org/10.1111/1468-0106.12016
Publisher: Wiley
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.
Abstract:
Citation Styles
Harvard Citation style: 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 Citation style: 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