Contents of the volume

2017, Volume 70 - Issue 3

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 August 2017

ASYMMETRIC EFFECT OF REAL EXCHANGE RATE VOLATILITY ON AGRICULTURAL PRODUCTS EXPORT: A CASE STUDY

Otse F. Alegwu, Benjamin C. Asogwa, Goodness C. Aye

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FACTORS INFLUENCING INTER-REGIONAL LIVING-COST DIFFERENTIALS: PANEL DATA ANALYSIS FOR THE CASE OF THE U.S.

Richard Cebula, John CONNAUGHTON , Caroline SWARTZ

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HOW MUCH INEQUALITY IS HARMFUL FOR GROWTH? THE GROWTH MAXIMIZING RATE OF INEQUALITY IN THE CONTEXT OF THE MEXICAN ECONOMY

Jorge Charles-Coll, Elisabeth L. MAYER-GRANADOS

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PROCYCLICAL TENDENCIES IN A SMALL OIL EXPORTER

Roger Hosein, Isaac DIALSINGH, Jaymieon JAGESSAR

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WHEN IS LOWER INFLATION LESS STABLE? EVIDENCE FROM EIGHT DEVELOPING ECONOMIES

Georgios Karras

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INDIA'S BURGEONING FOOD SUBSIDIES: HOW MUCH CAN WE BLAME THE FOOD CORPORATION OF INDIA?

Swaha Shome, Mala Lalvani

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ACHIEVING SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT IN COMMUNITIES ACROSS THE UNITED STATES

Oluwole Owoye, Olugbenga A. Onafowora

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Georgios KARRAS, University of Illinois at Chicago, Illinois, USA

When is Lower Inflation less Stable? Evidence from Eight Developing Economies

Pages

333-352

Abstract

This paper investigates the relationship between inflation and inflation volatility in eight developing economies. Using monthly data for Chile, China, India, Indonesia, Korea, Poland, South Africa, and Turkey, the results show that inflation and its volatility have been positively correlated when inflation exceeds a certain value, but negatively correlated when inflation is below this threshold. The evidence also suggests that inflation volatility is minimized at inflation rates that differ across the countries, ranging from roughly 3% in South Africa to 12% in Turkey, a range which includes both the 3.5% break point predicted by the New Keynesian model of Coibion et al. (2012) and the 4% inflation target recommended by Ball (2013) and Krugman (2013), but not the (formal or informal) 2% inflation target of many central banks.

JEL classification

E31, E32

Keywords

Inflation, Inflation Volatility, Trend Inflation

Index

  1. Introduction
  2. The data
  3. Empirical evidence
  4. Discussion and conclusions

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