Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5087346 | Journal of Asian Economics | 2013 | 15 Pages |
Abstract
⺠The perception that inflation dynamics in Asia are driven by supply shocks implies a limited role for monetary policy. ⺠The region's economic developments over the last two decades suggest that the drivers of inflation may have changed. ⺠We use a Global VAR to analyze inflation dynamics in Asia, incorporating trade and financial linkages among economies. ⺠Monetary and supply shocks have been the main drivers of inflation in Asia over the past two decades. ⺠The role of demand pressures has been recently increasing; and inflation spillovers from China to the region are sizable.
Related Topics
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Authors
Carolina Osorio, D. Filiz Unsal,