FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W3124811665> ?p ?o ?g. }

• W3124811665 endingPage "254" @default.
• W3124811665 startingPage "233" @default.
• W3124811665 abstract "This paper studies the impact of inflation targeting on the evolution of inflation persistence and the effects of aggregation across expenditure categories. For this purpose we use disaggregate quarterly data on 12 major subcategories of the Korean CPI. We compare persistence in a sample covering 1986Q1-1997Q2 with persistence under inflation targeting between 1999Q1 and 2010Q2. The main results are three-fold. First, the persistence of headline inflation as well as most CPI categories falls after the adoption of inflation targeting. Second, the evidence points to a large cross-sectional heterogeneity in the degree of inflation persistence. Third, while aggregation of heterogeneous categories induces additional persistence in the early part of the sample, a reverse aggregation effect is found in the second half: the persistence of the aggregate CPI inflation rate is significantly smaller than the average of persistence estimates across sectors. This is consistent with the Bank of Korea effectively stabilizing aggregate shocks under inflation targeting. Our paper provides the first evidence of disaggregate inflation persistence for an Asian emerging market economy.Keywords: Inflation persistence. Sectoral inflation, Aggregation, Inflation targeting. Monetary policy strategy. Dynamic factor modelJEL Classification: C22, E5, E31I. IntroductionThe degree of inflation persistence contains valuable information about the effectiveness of monetary policy. Well-anchored inflation expectations as well as a clear and credible policy mandate to achieve price stability are generally thought of as reducing inflation persistence. Therefore, the evolution of inflation persistence in the aftermath of the adoption of a new monetary policy regime is particularly informative.Besides the persistence of the aggregate inflation rate, the persistence properties of inflation at a disaggregate level are also a valuable input for monetary policy. The rationale for using disaggregate data is that the aggregation process itself - using heterogeneous individual components - could lead to spuriously high persistence estimates for the aggregate inflation series. Therefore, the assessment of the true degree of inflation persistence using aggregate Consumer Price (CPI) inflation data is obscured by an aggregation bias. The persistence of aggregate inflation is typically found to be substantially higher than the average persistence of the CPI components.While inflation persistence at the level of the aggregate CPI received considerable attention over the recent years, surprisingly few studies analyze inflation persistence at a disaggregate level. The lack of empirical research in this field is mostly due to data limitations. In fact, most empirical studies focus on either the U.S. economy or selected European economies for which detailed disaggregate data, even for very high levels of disaggregation, is available. For emerging market economies, where data limitations are more severe, even less is known about persistence at a sector level. This is unfortunate since it is in emerging market economies where the cross-sectional heterogeneity in inflation persistence is likely to be particularly large.This paper studies the evolution of inflation persistence across sectors after the adoption of a new monetary regime and the effects of aggregation for the case of Korea. The adoption of inflation targeting (G?) by the Bank of Korea in 1999 is likely to affect the persistence of inflation both at the aggregate and the disaggregated level and, by doing so, also the quantitative properties of the aggregation bias.1We use data on 12 major subcategories of the Korean CPI to establish three key findings: First, persistence of the aggregate as well as most CPI categories falls after the adoption of IT. Second, the evidence points to a large degree of cross-sectional heterogeneity in the degree of inflation persistence. …" @default.
• W3124811665 created "2021-02-01" @default.
• W3124811665 creator A5002909097 @default.
• W3124811665 date "2012-10-01" @default.
• W3124811665 modified "2023-09-23" @default.
• W3124811665 title "Inflation Targeting, Aggregation, and Inflation Persistence: Evidence from Korean CPI Components" @default.
• W3124811665 cites W1026118202 @default.
• W3124811665 cites W1523921436 @default.
• W3124811665 cites W1542485560 @default.
• W3124811665 cites W1966514051 @default.
• W3124811665 cites W1984885276 @default.
• W3124811665 cites W1995455747 @default.
• W3124811665 cites W2013716224 @default.
• W3124811665 cites W2038601479 @default.
• W3124811665 cites W2051021291 @default.
• W3124811665 cites W2052411683 @default.
• W3124811665 cites W2056454312 @default.
• W3124811665 cites W2063087137 @default.
• W3124811665 cites W2068185035 @default.
• W3124811665 cites W2089973579 @default.
• W3124811665 cites W2090128667 @default.
• W3124811665 cites W2117790685 @default.
• W3124811665 cites W2144386104 @default.
• W3124811665 cites W2153195500 @default.
• W3124811665 cites W3111918647 @default.
• W3124811665 cites W3121700301 @default.
• W3124811665 cites W3123498379 @default.
• W3124811665 cites W3124736041 @default.
• W3124811665 cites W3125543009 @default.
• W3124811665 cites W84083189 @default.
• W3124811665 hasPublicationYear "2012" @default.
• W3124811665 type Work @default.
• W3124811665 sameAs 3124811665 @default.
• W3124811665 citedByCount "3" @default.
• W3124811665 countsByYear W31248116652014 @default.
• W3124811665 countsByYear W31248116652020 @default.
• W3124811665 crossrefType "journal-article" @default.
• W3124811665 hasAuthorship W3124811665A5002909097 @default.
• W3124811665 hasConcept C121332964 @default.
• W3124811665 hasConcept C126285488 @default.
• W3124811665 hasConcept C127413603 @default.
• W3124811665 hasConcept C139719470 @default.
• W3124811665 hasConcept C149782125 @default.
• W3124811665 hasConcept C154815372 @default.
• W3124811665 hasConcept C162324750 @default.
• W3124811665 hasConcept C185782297 @default.
• W3124811665 hasConcept C185824701 @default.
• W3124811665 hasConcept C187320778 @default.
• W3124811665 hasConcept C200941418 @default.
• W3124811665 hasConcept C2781009140 @default.
• W3124811665 hasConcept C33332235 @default.
• W3124811665 hasConcept C556758197 @default.
• W3124811665 hasConcept C73374054 @default.
• W3124811665 hasConceptScore W3124811665C121332964 @default.
• W3124811665 hasConceptScore W3124811665C126285488 @default.
• W3124811665 hasConceptScore W3124811665C127413603 @default.
• W3124811665 hasConceptScore W3124811665C139719470 @default.
• W3124811665 hasConceptScore W3124811665C149782125 @default.
• W3124811665 hasConceptScore W3124811665C154815372 @default.
• W3124811665 hasConceptScore W3124811665C162324750 @default.
• W3124811665 hasConceptScore W3124811665C185782297 @default.
• W3124811665 hasConceptScore W3124811665C185824701 @default.
• W3124811665 hasConceptScore W3124811665C187320778 @default.
• W3124811665 hasConceptScore W3124811665C200941418 @default.
• W3124811665 hasConceptScore W3124811665C2781009140 @default.
• W3124811665 hasConceptScore W3124811665C33332235 @default.
• W3124811665 hasConceptScore W3124811665C556758197 @default.
• W3124811665 hasConceptScore W3124811665C73374054 @default.
• W3124811665 hasIssue "3" @default.
• W3124811665 hasLocation W31248116651 @default.
• W3124811665 hasOpenAccess W3124811665 @default.
• W3124811665 hasPrimaryLocation W31248116651 @default.
• W3124811665 hasRelatedWork W2002726443 @default.
• W3124811665 hasRelatedWork W2051106122 @default.
• W3124811665 hasRelatedWork W2056454312 @default.
• W3124811665 hasRelatedWork W2068185035 @default.
• W3124811665 hasRelatedWork W2083932864 @default.
• W3124811665 hasRelatedWork W2096135476 @default.
• W3124811665 hasRelatedWork W2107241158 @default.
• W3124811665 hasRelatedWork W2122001309 @default.
• W3124811665 hasRelatedWork W2184558444 @default.
• W3124811665 hasRelatedWork W2362753415 @default.
• W3124811665 hasRelatedWork W2368018286 @default.
• W3124811665 hasRelatedWork W2555981149 @default.
• W3124811665 hasRelatedWork W2908327563 @default.
• W3124811665 hasRelatedWork W3111918647 @default.
• W3124811665 hasRelatedWork W3121700301 @default.
• W3124811665 hasRelatedWork W3123949872 @default.
• W3124811665 hasRelatedWork W3125375677 @default.
• W3124811665 hasRelatedWork W3125538690 @default.
• W3124811665 hasRelatedWork W81186534 @default.
• W3124811665 hasRelatedWork W1905217509 @default.
• W3124811665 hasVolume "25" @default.
• W3124811665 isParatext "false" @default.
• W3124811665 isRetracted "false" @default.
• W3124811665 magId "3124811665" @default.
• W3124811665 workType "article" @default.