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Can country policy and institutional frameworks reduce global inflation?

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  • Ozili, Peterson K

Abstract

The study investigates the effect of country policy and institutional frameworks (CPIFs) on global inflation while controlling for the rate of unemployment and economic growth rate from 2005 to 2023. The country policy and institutional frameworks examined are the economic management policies, social inclusion/equity policies, structural policies, and public sector management and institutions. The findings reveal that public sector management and institutions as well as social inclusion and social equity policy have a significant effect on global inflation. The results imply that the presence of strong public sector management and institutions lead to a significant decrease in the inflation rate while social inclusion and social equity policies lead to an increase in the inflation rate. The implication of the findings is that public sector management and institutions as well as social inclusion and social equity policies are crucial for the persistence of global inflation.

Suggested Citation

  • Ozili, Peterson K, 2025. "Can country policy and institutional frameworks reduce global inflation?," MPRA Paper 125564, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125564
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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