Contents
1 Introduction
2 Background
2.1 Inflation Performance in Emerging Markets
2.2 The Globalization of Inflation Hypothesis
2.3 Institutional Changes
3 The Role of Domestic and Global Factors: An Empirical Assessment
3.1 An Augmented Phillips Curve Framework
3.1.1 Empirical Strategy
3.1.2 Estimation Results
3.2 Contributions to Inflation Deviations from “Target”
3.3 Contributions to Inflation Variation
3.4 Robustness Exercises
3.4.1 Global Factors
3.4.2 Extensions
3.4.3 Inflation Expectation Horizons
4 Conclusions
References
A Data Sources
List of Figures
1 Disinflation in Emerging Markets
2 Share of Countries with Double-Digit Inflation
3 Inflation Dynamics
4 Integration of Emerging Markets into Global Markets
5 Adoption of Policy Frameworks
6 Contributions to Deviation of Core Inflation from Target, by Subperiod
7 Common Driver of Core Inflation
8 Contributions to Deviations of Core Inflation from Target, by Country
9 Contributions to Inflation Variation, by Country
10 Contribution of Domestic and Global Factors to Inflation Variation, by Country
List of Tables
1 Hybrid Phillips Curve Estimation, Specifications Augmented for External Factors
2 Hybrid Phillips Curve Estimation, Alternative Specifications
3 Hybrid Phillips Curve Estimation, Extensions
4 Hybrid Phillips Curve Estimation, Varying Inflation Expectation Horizon
A.1 Data sources