Price Pressure Gaps: An Application of P* Using Korean Data

March 1, 1991

Preview Citation

Format: Chicago

Richard D Haas, and Robert J. Corker Price Pressure Gaps: An Application of P* Using Korean Data, (USA: International Monetary Fund, 1991) accessed October 5, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents estimates of a price-pressure indicator for Korea. It does this by constructing measures of how much M2 velocity and output differ from their long-term values. This, in turn, involves estimating a demand for money function in an error correction framework in which interest rates in the unorganized money market help to account for the effects of ongoing financial liberalization. An equation explaining the Korean inflation rate is identified in which both the monetary variable--the velocity gap--and the real variable--the output gap--play important roles.

Subject: Demand for money, Monetary aggregates, Monetary base, Money, National accounts, Personal income, Velocity of money

Keywords: Broad money, Demand for money, Error correction term, Excess demand, Hallman et al error correction price inflation equation, Income elasticity, Korea income velocity, Korea price gap, Monetary aggregate, Monetary aggregates, Monetary base, Money demand, Personal income, Pressure gap, Price gap, Price inflation equation, Velocity of money, WP

Publication Details

Pages:

26
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 1991/026
Stock No:

WPIEA0261991
ISBN:

9781451981728
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers