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Exchange Rate Regimes and Persistence of Inflation in Thailand

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  • Jiranyakul, Komain

Abstract

This paper explored the degree of inflation persistence in Thailand using both headline and sectoral CPI indices during the 1985-2012 period. The results showed that the degree of persistence was low across the fixed and floating exchange rate regimes. The mean shifts appeared to be mostly negative by the impact of switching from fixed to floating exchange rate regime. Furthermore, there seemed to be monetary accommodation of inflation persistence in both regimes. However, some negative mean shifts in the inflation process might be resulted from the impact of inflation targeting implemented in May 2000.

Suggested Citation

  • Jiranyakul, Komain, 2013. "Exchange Rate Regimes and Persistence of Inflation in Thailand," MPRA Paper 50109, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:50109
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    File URL: https://mpra.ub.uni-muenchen.de/50637/1/MPRA_paper_50637.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Inflation persistence; exchange rate regimes; monetary accommodation.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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