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Inflation persistence and exchange rate regimes: evidence from developing countries

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Listed:
  • Michael Bleaney

    (University of Nottingham)

  • Manuela Francisco

    (University of Minho)

Abstract

Using data for 102 developing countries, it is shown that inflation persistence is particularly low in countries on hard pegs, and particularly high in countries with severe inflationary problems. Inflation persistence is similar under floating and soft pegs. The finding of low inflation persistence in hard pegs is a new result.

Suggested Citation

  • Michael Bleaney & Manuela Francisco, 2005. "Inflation persistence and exchange rate regimes: evidence from developing countries," Economics Bulletin, AccessEcon, vol. 6(2), pages 1-15.
    • Handle: RePEc:ebl:ecbull:eb-04f40009
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    References listed on IDEAS

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    11. Alogoskoufis, George S & Smith, Ron, 1991. "The Phillips Curve, the Persistence of Inflation, and the Lucas Critique: Evidence from Exchange-Rate Regimes," American Economic Review, American Economic Association, vol. 81(5), pages 1254-1275, December.
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    Cited by:

    1. Jiranyakul, Komain, 2015. "Exchange Rate Regimes and Persistence of Inflation in Thailand," MPRA Paper 66203, University Library of Munich, Germany.
    2. Giannellis, Nikolaos & Koukouritakis, Minoas, 2013. "Exchange rate misalignment and inflation rate persistence: Evidence from Latin American countries," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 202-218.
    3. Wu, Jo-Wei & Wu, Jyh-Lin, 2018. "Does a flexible exchange rate regime increase inflation persistence?," Journal of International Money and Finance, Elsevier, vol. 86(C), pages 244-263.
    4. Andrew Phiri, 2016. "Inflation persistence in African countries: Does inflation targeting matter?," Economics and Business Letters, Oviedo University Press, vol. 5(3), pages 65-71.
    5. Jiranyakul, Komain, 2013. "Exchange Rate Regimes and Persistence of Inflation in Thailand," MPRA Paper 50109, University Library of Munich, Germany.
    6. Evžen Kočenda & Balázs Varga, 2018. "The Impact of Monetary Strategies on Inflation Persistence," International Journal of Central Banking, International Journal of Central Banking, vol. 14(4), pages 229-274, September.
    7. Sakiru Adebola Solarin & Luis A. Gil-Alana & Carmen Lafuente, 2020. "Persistence of the Misery Index in African Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 825-841, February.
    8. Abhijit Sen Gupta, 2008. "Does capital account openness lower inflation?," International Economic Journal, Taylor & Francis Journals, vol. 22(4), pages 471-487.
    9. Coulibaly, Issiaka & Davis, Junior, 2013. "Exchange rate regimes and economic performance: Does CFA zone membership benefit their economies?," MPRA Paper 54075, University Library of Munich, Germany.
    10. Phiri, Andrew, 2016. "Changes in inflation persistence prior and subsequent to the subprime crisis: What are the implications for South Africa?," MPRA Paper 70645, University Library of Munich, Germany.
    11. Abhijit Sen Gupta, 2007. "Does Capital Account Openness Lower Inflation?," Indian Council for Research on International Economic Relations, New Delhi Working Papers 191, Indian Council for Research on International Economic Relations, New Delhi, India.

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    More about this item

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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