Inflation Smoothing and the Modest Effect of VAT in Germany:
Increases in German core inflation following the 2007 VAT hike were smaller than expected, leading to speculation about delayed inflationary effects. This paper argues to the contrary that price increases in advance of the VAT hike explain the small increase upon implementation. We find that core in...
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Washington, D.C
International Monetary Fund
2008
|
| Schriftenreihe: | IMF Working Papers
Working Paper No. 08/175 |
| Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
| Zusammenfassung: | Increases in German core inflation following the 2007 VAT hike were smaller than expected, leading to speculation about delayed inflationary effects. This paper argues to the contrary that price increases in advance of the VAT hike explain the small increase upon implementation. We find that core inflation rose by 0.36 percentage point in the run up and by a further 0.40 percentage point at the time of the VAT hike. Cumulatively, the tax hike contributed to two thirds of the increase in core inflation in 2006-07 at an estimated pass-through of 73 percent. Most of the increase in 2006 was of general nature, while about one sixth can be attributed to durable goods and items with low degree of competition |
| Beschreibung: | 1 Online-Ressource (21 p) |
| ISBN: | 1451870337 9781451870336 |
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| index_date | 2024-07-03T20:13:26Z |
| indexdate | 2024-07-10T09:35:34Z |
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| spelling | Danninger, Stephan Verfasser aut Inflation Smoothing and the Modest Effect of VAT in Germany Danninger, Stephan Washington, D.C International Monetary Fund 2008 1 Online-Ressource (21 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 08/175 Increases in German core inflation following the 2007 VAT hike were smaller than expected, leading to speculation about delayed inflationary effects. This paper argues to the contrary that price increases in advance of the VAT hike explain the small increase upon implementation. We find that core inflation rose by 0.36 percentage point in the run up and by a further 0.40 percentage point at the time of the VAT hike. Cumulatively, the tax hike contributed to two thirds of the increase in core inflation in 2006-07 at an estimated pass-through of 73 percent. Most of the increase in 2006 was of general nature, while about one sixth can be attributed to durable goods and items with low degree of competition Online-Ausg Carare, Alina Sonstige oth http://elibrary.imf.org/view/IMF001/09399-9781451870336/09399-9781451870336/09399-9781451870336.xml Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Danninger, Stephan Inflation Smoothing and the Modest Effect of VAT in Germany |
| title | Inflation Smoothing and the Modest Effect of VAT in Germany |
| title_auth | Inflation Smoothing and the Modest Effect of VAT in Germany |
| title_exact_search | Inflation Smoothing and the Modest Effect of VAT in Germany |
| title_exact_search_txtP | Inflation Smoothing and the Modest Effect of VAT in Germany |
| title_full | Inflation Smoothing and the Modest Effect of VAT in Germany Danninger, Stephan |
| title_fullStr | Inflation Smoothing and the Modest Effect of VAT in Germany Danninger, Stephan |
| title_full_unstemmed | Inflation Smoothing and the Modest Effect of VAT in Germany Danninger, Stephan |
| title_short | Inflation Smoothing and the Modest Effect of VAT in Germany |
| title_sort | inflation smoothing and the modest effect of vat in germany |
| url | http://elibrary.imf.org/view/IMF001/09399-9781451870336/09399-9781451870336/09399-9781451870336.xml |
| work_keys_str_mv | AT danningerstephan inflationsmoothingandthemodesteffectofvatingermany AT cararealina inflationsmoothingandthemodesteffectofvatingermany |