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International Evidenceon Tradables and Nontradables Inflation

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  • Mr. Jose De Gregorio
  • Mr. Alberto Giovannini
  • Holger C. Wolf

Abstract

Using 1970-85 sectoral data for the OECD we find that inflation in nontradable good exceeds inflation in tradables. We identify a demand shift towards nontradables and faster growth of total factor productivity in the tradable goods sector as the prime causes of the differential inflation. In addition, disinflation attempts and the exchange rate regime appear to have exerted significant influence on the relative inflation rate.

Suggested Citation

  • Mr. Jose De Gregorio & Mr. Alberto Giovannini & Holger C. Wolf, 1994. "International Evidenceon Tradables and Nontradables Inflation," IMF Working Papers 1994/033, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:1994/033
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    References listed on IDEAS

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    More about this item

    Keywords

    WP; exchange rate; nontradable goods; core EMS economy; relative price; sector result; supply curve; oil price increase; Inflation; Productivity; Income; Total factor productivity; Exchange rate arrangements; Europe;
    All these keywords.

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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