Advanced Search
MyIDEAS: Login

Inflation in developing Asia

Contents:

Author Info

  • Jongwanich, Juthathip
  • Park, Donghyun

Abstract

Inflation emerged as the single biggest macroeconomic challenge confronting developing Asia during 2007-2008, although inflationary pressures have abated since the second half of 2008 due to the global crisis. This paper empirically examines the relative importance of different sources of inflation in developing Asia. In particular, it tests the widely held view that the region's inflationary surge during 2007-2008 was primarily the result of external price factors such as oil and food shocks. Our central empirical result is that, contrary to popular misconception, Asia's inflation is largely homegrown and has arisen due to excess aggregate demand and inflationary expectations, rather than external price shocks. This suggests monetary policy will remain a powerful tool in fighting inflation in Asia, as well as in defusing the risks of deflation.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6W53-4WXSK11-2/2/3c91ec41227ea51557862f350549b2ea
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 20 (2009)
Issue (Month): 5 (September)
Pages: 507-518

as in new window
Handle: RePEc:eee:asieco:v:20:y:2009:i:5:p:507-518

Contact details of provider:
Web page: http://www.elsevier.com/locate/asieco

Related research

Keywords: Inflation Commodity shock Aggregate demand Inflation expectation Asia;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. N. Gregory Mankiw & Ricardo Augusto Marc Rocha Reis & Justin Wolfers, 2004. "Disagreement about Inflation Expectations," Yale School of Management Working Papers ysm391, Yale School of Management.
  2. Jonathan McCarthy, 2007. "Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies," Eastern Economic Journal, Eastern Economic Association, vol. 33(4), pages 511-537, Fall.
  3. Laurence Ball, 2000. "Near-Rationality and Inflation in Two Monetary Regimes," NBER Working Papers 7988, National Bureau of Economic Research, Inc.
  4. Nombulelo Duma, 2008. "Pass-Through of External Shocks to Inflation in Sri Lanka," IMF Working Papers 08/78, International Monetary Fund.
  5. Ashok Bhundia, 2002. "An Empirical Investigation of Exchange Rate Pass-Through in South Africa," IMF Working Papers 02/165, International Monetary Fund.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Libo Wu & Jing Li & ZhongXiang Zhang, 2011. "Inflationary effect of oil-price shocks in an imperfect market: a partial transmission input-output analysis," Economics Study Area Working Papers 115, East-West Center, Economics Study Area.
  2. Carolina Osorio & D. Filiz Unsal, 2011. "Inflation Dynamics in Asia," IMF Working Papers 11/257, International Monetary Fund.
  3. Khatun, Fahmida & Ahamad, Mazbahul G., 2012. "Investigating the determinants of inflationary trends in Bangladesh: an ARDL bounds F-Test Approach," MPRA Paper 42572, University Library of Munich, Germany.
  4. Fujii, Tomoki, 2013. "Impact of food inflation on poverty in the Philippines," Food Policy, Elsevier, vol. 39(C), pages 13-27.
  5. repec:pra:mprapa:37705 is not listed on IDEAS
  6. Lee, Chien-Chiang & Chen, Mei-Ping & Chang, Chi-Hung, 2013. "Dynamic relationships between industry returns and stock market returns," The North American Journal of Economics and Finance, Elsevier, vol. 26(C), pages 119-144.
  7. Sungbae An & Heedon Kang, 2011. "Oil Shocks in a DSGE Model for the Korean Economy," NBER Chapters, in: Commodity Prices and Markets, East Asia Seminar on Economics, Volume 20, pages 295-321 National Bureau of Economic Research, Inc.
  8. Peeters, Marga & Albers, Ronald, 2011. "Food prices, government subsidies and fiscal balances in south Mediterranean countries," MPRA Paper 37707, University Library of Munich, Germany, revised 20 Mar 2012.
  9. Al-Shawarby, Sherine & Selim, Hoda, 2012. "Are international food price spikes the source of Egypt's high inflation ?," Policy Research Working Paper Series 6177, The World Bank.
  10. Etsuro Shioji & Taisuke Uchino, 2010. "Pass-Through of Oil Prices to Japanese Domestic Prices," NBER Working Papers 15888, National Bureau of Economic Research, Inc.
  11. Tang, Hsiao Chink, 2008. "Commodity Prices and Monetary Policy in Emerging East Asia," Working Papers on Regional Economic Integration 23, Asian Development Bank.
  12. Marcel Förster & Peter Tillmann, 2013. "Local Inflation: Reconsidering the International Comovement of Inflation," MAGKS Papers on Economics 201303, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:20:y:2009:i:5:p:507-518. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.