Inflation : Concepts, Evolution, and Correlates
In the past four to five decades, inflation has fallen around the world, with median annual global consumer price inflation down from a peak of 16.6 percent in 1974 to 2.6 percent in 2017. This decline began in advanced economies in the mid-1980s a...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/448531550088251230/Inflation-Concepts-Evolution-and-Correlates http://hdl.handle.net/10986/31276 |
| Summary: | In the past four to five decades,
inflation has fallen around the world, with median annual
global consumer price inflation down from a peak of 16.6
percent in 1974 to 2.6 percent in 2017. This decline began
in advanced economies in the mid-1980s and in emerging
market and developing economies in the mid-1990s. By 2000,
global inflation had stabilized at historically low levels.
Lower inflation has been accompanied by reduced inflation
volatility, especially in advanced economies. This
improvement in inflation outcomes has stemmed in large part
from structural economic changes, including improved
monetary and fiscal policy frameworks as well as
international trade and financial liberalization. Lower and
more stable inflation has often been associated with better
growth and development outcomes, partly by reducing
uncertainty, fostering a more efficient allocation of
resources, and helping preserve financial stability. |
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