Inflation Variability Across Australian Households: Implications for Inequality and Indexation Policy

2020 ◽  
Author(s):  
Marcel van Kints ◽  
Robert V. Breunig
Keyword(s):  
Inflation Variability

Inflation, Inflation Variability, and Corruption

2004 ◽  
Vol 16 (1) ◽  
pp. 77-100 ◽  
Author(s):  
Miguel Braun ◽  
Rafael Di tella
Keyword(s):  
Inflation Variability

scholarly journals INFLATION EXPECTATIONS AND MONETARY POLICY DESIGN: EVIDENCE FROM THE LABORATORY

2016 ◽  
Vol 22 (4) ◽  
pp. 1035-1075 ◽  
Author(s):  
Damjan Pfajfar ◽  
Blaž Žakelj
Keyword(s):  
Monetary Policy ◽  
Laboratory Experiments ◽  
Policy Design ◽  
New Keynesian ◽  
Inflation Expectations ◽  
Central Question ◽  
Policy Regime ◽  
Expectations Formation ◽  
Reaction Coefficient ◽  
Inflation Variability

Using laboratory experiments within a New Keynesian framework, we explore the interaction between the formation of inflation expectations and monetary policy design. The central question in this paper is how to design monetary policy when expectations formation is not perfectly rational. Instrumental rules that use actual rather than forecasted inflation produce lower inflation variability and reduce expectational cycles. A forward-looking Taylor rule where a reaction coefficient equals 4 produces lower inflation variability than rules with reaction coefficients of 1.5 and 1.35. Inflation variability produced with the latter two rules is not significantly different. Moreover, the forecasting rules chosen by subjects appear to vary systematically with the policy regime, with destabilizing mechanisms chosen more often when inflation control is weaker.

scholarly journals Middle income trap and factors affecting the risk of growth slowdown in upper middle income countries

2020 ◽  
Vol 9 (4) ◽  
pp. 350-360
Author(s):  
Uğur Ursavaş ◽  
Hakan Sarıbaş
Keyword(s):  
Trade Openness ◽  
The United States ◽  
Institutional Factors ◽  
Law And Order ◽  
Probit Regression ◽  
Middle Income ◽  
Factors Affecting ◽  
Middle Income Countries ◽  
Inflation Variability ◽  
Do So

In this paper, we investigate the macroeconomic, demographic and institutional factors affecting the probability of growth slowdown in upper-middle-income countries within the framework of the growth slowdown methodology developed by Eichengreen et al. (2011). To do so, we use probit regression, and the dataset covers the period 1980-2015. The results show that growth slowdown occurs when per capita income reaches 22 percent of that in the United States. Besides, an increase in the relative income, gross capital formation, trade openness, years of total schooling, old dependency ratio and law and order index increases the risk of growth slowdown, whereas an increase in public debt, inflation variability and years of secondary and higher schooling decreases the risk of growth slowdown.

scholarly journals Inflation, its volatility and the inflation-growth tradeoff in India

2015 ◽  
Vol 10 (3) ◽  
pp. 350-361 ◽  
Author(s):  
Raghbendra Jha ◽  
Varsha S. Kulkarni
Keyword(s):  
Phillips Curve ◽  
Ordinary Least Squares ◽  
New Keynesian ◽  
Recent Analysis ◽  
Output Gap ◽  
Content Type ◽  
Inflation Volatility ◽  
Expected Inflation ◽  
The Usa ◽  
Inflation Variability

Purpose – The purpose of this paper is to amend the New Keynesian Phillips Curve (NKPC) model to include inflation volatility. It provides results on the determinants of inflation volatility and expected inflation volatility for ordinary least squares and autoregressive distributed lags (1,1) models and for change in inflation volatility and change in expected inflation volatility using error correction mechanism (ECM) models. Output gap affects change in expected inflation volatility alone (in the ECM model) and not in the other models. Major determinants of inflation volatility and expected inflation volatility are identified. To the best of the authors knowledge this is the first paper to augment the NKPC to include inflation volatility. Design/methodology/approach – Recent analysis has indicated the importance of inflation volatility for the monetary transmission mechanism in India (Kapur and Behera, 2012). In the analysis of such monetary policy mechanisms the NKPC has proved to be a useful tool. Thus Patra and Ray (2010) for India and Brissimis and Magginas (2008) for the USA find considerable support for the standard NKPC. The purpose of this paper is to synthesize and integrate these two models by extending the standard NKPC framework to include inflation volatility and test its significance for the case of India. Findings – In the case of inflation volatility output gap, lagged output gap and lagged inflation volatility are all insignificant. The level of inflation has a negative significant impact whereas the level of expected inflation has a positive and significant impact. In the case of expected inflation volatility lagged output gap has a negative and significant impact, the price level has a positive and significant impact whereas expected price has a negative and weakly significant impact. ECM reveals change in inflation variability falls significantly with lagged inflation volatility and lagged inflation and less significantly with change in expected inflation. It rises with lagged expected inflation although the coefficient is only weakly significant. Lagged output gap and change in output gap are insignificant. Originality/value – This paper makes two original contributions. First, it extends the New Keynesian framework to include inflation volatility. Second, it estimates this model for India. To the best of the authors knowledge this is the first paper to make these contributions.

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