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Inflation of Tradable Goods

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  • Rodrigo Cerda

    ()
    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract

This paper explores which large economy blocks determine foreign inflation around the world. In the analysis, we focus on importable goods of 15 countries ranging from 1992 to 2002 at monthly basis. Using a SUR estimation, we find the US driving the inflation of importable goods around the world. However, decomposing the variation of importable good price indexes by frequency, by means of the Baxter-King approximate band pass filter, we find that the Euro and Asian areas might be a source of considerable inflation on the short run.

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Paper provided by Instituto de Economia. Pontificia Universidad Católica de Chile. in its series Documentos de Trabajo with number 283.

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Date of creation: 2005
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Publication status: Published as "Inflation of Tradable Goods", Applied Economics Letters, 2007.
Handle: RePEc:ioe:doctra:283

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