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Another look at global disinflation

In: Financial Globalization, 20th Anniversary Conference, NBER-TCER-CEPR

Listed author(s):
  • Toshitaka Sekine

This paper highlights relative price adjustments taking place in the global economy as important sources of the lower levels of inflation rates observed in the recent decades. Using a markup model, it shows substantial effects from declines in wage costs and import prices relative to consumer prices. Out of the five percentage point decline in the inflation rates in eight OECD countries from 1970-1989 to 1990-2006, global shocks to two relative prices account for more than 1.5 percentage points, while a monetary policy shock accounts for another one percentage point. J. Japanese Int. Economies 23 (2) (2009) 220-239.

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This chapter was published in:
  • Takeo Hoshi & Takatoshi Ito, 2009. "Financial Globalization, 20th Anniversary Conference, NBER-TCER-CEPR," NBER Books, National Bureau of Economic Research, Inc, number hosh07-1, March.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 12021.
    Handle: RePEc:nbr:nberch:12021
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