Publication:
Exploring the nexus between inflation and globalization under inflation targeting through the lens of New Zealand's experience

Thumbnail Image

Departments

School / College / Institute

Program

KU Authors

Co-Authors

Martínez-García, Enrique
Soytaş, Mehmet Ali

Publication Date

Language

Embargo Status

NO

Journal Title

Journal ISSN

Volume Title

Alternative Title

Abstract

We investigate empirically the inflation dynamics in New Zealand, a small open economy and a pioneer in inflation targeting, under various open-economy Phillips curve specifications. Our forecasting exercise suggests that open-economy Phillips curves under standard measures of global slack do not help forecast domestic inflation, possibly indicating measurement problems with global slack itself. In turn, under a stable inflation target we still find that (i) global inflation and (ii) global inflation and oil prices have information content for headline CPI and core CPI inflation over the 1997:Q3-2015:Q1 period and appear to be reliable proxies for global slack in forecasting inflation.

Source

Publisher

Subject

Inflation

Citation

Has Part

Source

Book Series Title

Edition

DOI

item.page.datauri

Link

Rights

Copyrights Note

Endorsement

Review

Supplemented By

Referenced By

0

Views

4

Downloads