Inflation Dynamics in Asia: Causes, Changes, and Spillovers From China
The perception that Asia''s inflation dynamics is driven by idiosyncratic supply shocks implies, as a corollary, that there is little scope for a policy reaction to a build-up of inflationary pressures. However, Asia''s fast growth and integration over the last two decades sugges...
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1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2011
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Schriftenreihe: | IMF Working Papers
Working Paper No. 11/257 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | The perception that Asia''s inflation dynamics is driven by idiosyncratic supply shocks implies, as a corollary, that there is little scope for a policy reaction to a build-up of inflationary pressures. However, Asia''s fast growth and integration over the last two decades suggest that the drivers of inflation may have changed, and that domestic demand pressures may now play a larger role than in the past. This paper presents a quantitative analysis of inflation dynamics in Asia using a Global VAR (GVAR) model, which explicitly incorporates the role of regional and global spillovers in driving Asia''s inflation. Our results suggest that over the past two decades the main drivers of inflation in Asia have been monetary and supply shocks, but also that, in recent years, the contribution of these shocks has fallen, whereas demand-side pressures have started to emerge as an important contributor to inflation in Asia |
Beschreibung: | 1 Online-Ressource (20 p) |
ISBN: | 1463923961 9781463923969 |
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spelling | Osorio, Carolina Verfasser aut Inflation Dynamics in Asia Causes, Changes, and Spillovers From China Osorio, Carolina Washington, D.C International Monetary Fund 2011 1 Online-Ressource (20 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 11/257 The perception that Asia''s inflation dynamics is driven by idiosyncratic supply shocks implies, as a corollary, that there is little scope for a policy reaction to a build-up of inflationary pressures. However, Asia''s fast growth and integration over the last two decades suggest that the drivers of inflation may have changed, and that domestic demand pressures may now play a larger role than in the past. This paper presents a quantitative analysis of inflation dynamics in Asia using a Global VAR (GVAR) model, which explicitly incorporates the role of regional and global spillovers in driving Asia''s inflation. Our results suggest that over the past two decades the main drivers of inflation in Asia have been monetary and supply shocks, but also that, in recent years, the contribution of these shocks has fallen, whereas demand-side pressures have started to emerge as an important contributor to inflation in Asia Online-Ausg Unsal, D. Filiz Sonstige oth http://elibrary.imf.org/view/IMF001/12272-9781463923969/12272-9781463923969/12272-9781463923969.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Osorio, Carolina Inflation Dynamics in Asia Causes, Changes, and Spillovers From China |
title | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China |
title_auth | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China |
title_exact_search | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China |
title_exact_search_txtP | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China |
title_full | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China Osorio, Carolina |
title_fullStr | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China Osorio, Carolina |
title_full_unstemmed | Inflation Dynamics in Asia Causes, Changes, and Spillovers From China Osorio, Carolina |
title_short | Inflation Dynamics in Asia |
title_sort | inflation dynamics in asia causes changes and spillovers from china |
title_sub | Causes, Changes, and Spillovers From China |
url | http://elibrary.imf.org/view/IMF001/12272-9781463923969/12272-9781463923969/12272-9781463923969.xml |
work_keys_str_mv | AT osoriocarolina inflationdynamicsinasiacauseschangesandspilloversfromchina AT unsaldfiliz inflationdynamicsinasiacauseschangesandspilloversfromchina |