Why Does Inflation Differ Across Countries? / Marta Campillo, Jeffrey A. Miron.

Format:

Book

Author/Creator:

Campillo, Marta.

Contributor:

National Bureau of Economic Research.

Miron, Jeffrey A.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5540.

NBER working paper series no. w5540

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1996.

Summary:

This paper attempts to explain the differences in inflation performance across countries. Earlier research has examined this topic, but it has considered only some of the factors that might be empirically important determinants of inflation rates. We consider the distaste for inflation, optimal tax considerations, time consistency issues, distortionary non-inflation policies and other factors that might be empirically important determinants of inflation performance. Overall, the results suggest that institutional arrangements - central bank independence or exchange rate mechanisms - are relatively unimportant determinants of inflation performance, while economic fundamentals - openness and optimal tax considerations - are relatively important determinants.

Notes:

Print version record

April 1996.