Understanding Inflation in Emerging and Developing Economies

Understanding Inflation in Emerging and Developing Economies

Emerging market and developing economies (EMDEs) have experienced an extraordinary decline in inflation since the early 1970s. After peaking in 1974 at 17.3 percent, inflation in these economies declined to 3.5 percent in 2017. Despite a checkered...

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Main Authors: Ha, Jongrim, Kose, M. Ayhan, Ohnsorge, Franziska L.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
PRICES
INFLATION
MONETARY SYSTEM
MONETARY POLICY
GLOBALIZATION
EMERGING MARKET ECONOMIES
Online Access:http://documents.worldbank.org/curated/en/816031551363524517/Understanding-Inflation-in-Emerging-and-Developing-Economies
http://hdl.handle.net/10986/31338
id okr-10986-31338
recordtype oai_dc
spelling okr-10986-313382022-09-05T00:23:38Z Understanding Inflation in Emerging and Developing Economies Ha, Jongrim Kose, M. Ayhan Ohnsorge, Franziska L. PRICES INFLATION MONETARY SYSTEM MONETARY POLICY GLOBALIZATION EMERGING MARKET ECONOMIES Emerging market and developing economies (EMDEs) have experienced an extraordinary decline in inflation since the early 1970s. After peaking in 1974 at 17.3 percent, inflation in these economies declined to 3.5 percent in 2017. Despite a checkered history of managing inflation among many EMDEs, disinflation occurred across all regions. This paper presents a summary of a recent book, "Inflation in Emerging and Developing Economies: Evolution, Drivers, and Policies," that analyzes this remarkable achievement. The findings suggest that many EMDEs enjoy the benefits of stability-oriented and resilient monetary policy frameworks, including central bank transparency and independence. Such policy frameworks need to be complemented by strong macroeconomic and institutional arrangements. Inflation expectations are more weakly anchored in EMDEs than in advanced economies. In EMDEs that do not operate inflation targeting frameworks, exchange rate movements tend to have larger and more persistent effects on inflation. 2019-03-04T22:34:09Z 2019-03-04T22:34:09Z 2019-02 Working Paper http://documents.worldbank.org/curated/en/816031551363524517/Understanding-Inflation-in-Emerging-and-Developing-Economies http://hdl.handle.net/10986/31338 English Policy Research Working Paper;No. 8761 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PRICES
INFLATION
MONETARY SYSTEM
MONETARY POLICY
GLOBALIZATION
EMERGING MARKET ECONOMIES
spellingShingle PRICES
INFLATION
MONETARY SYSTEM
MONETARY POLICY
GLOBALIZATION
EMERGING MARKET ECONOMIES
Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska L.
Understanding Inflation in Emerging and Developing Economies
relation Policy Research Working Paper;No. 8761
description Emerging market and developing economies (EMDEs) have experienced an extraordinary decline in inflation since the early 1970s. After peaking in 1974 at 17.3 percent, inflation in these economies declined to 3.5 percent in 2017. Despite a checkered history of managing inflation among many EMDEs, disinflation occurred across all regions. This paper presents a summary of a recent book, "Inflation in Emerging and Developing Economies: Evolution, Drivers, and Policies," that analyzes this remarkable achievement. The findings suggest that many EMDEs enjoy the benefits of stability-oriented and resilient monetary policy frameworks, including central bank transparency and independence. Such policy frameworks need to be complemented by strong macroeconomic and institutional arrangements. Inflation expectations are more weakly anchored in EMDEs than in advanced economies. In EMDEs that do not operate inflation targeting frameworks, exchange rate movements tend to have larger and more persistent effects on inflation.
format Working Paper
author Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska L.
author_facet Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska L.
author_sort Ha, Jongrim
title Understanding Inflation in Emerging and Developing Economies
title_short Understanding Inflation in Emerging and Developing Economies
title_full Understanding Inflation in Emerging and Developing Economies
title_fullStr Understanding Inflation in Emerging and Developing Economies
title_full_unstemmed Understanding Inflation in Emerging and Developing Economies
title_sort understanding inflation in emerging and developing economies
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/816031551363524517/Understanding-Inflation-in-Emerging-and-Developing-Economies
http://hdl.handle.net/10986/31338
_version_ 1764474099702169600

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