Search IMF Staff Papers


Advanced Search
Journal Description

Editorial Committee

How to Subscribe

Forthcoming Articles

Staff Papers Archive

Copyright Information

Use the free Adobe Acrobat Reader to view pdf files

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile




IMF Staff Papers Logo    September 2000
Volume 47, Number 3
 
Exchange Rate Regimes and Inflation Persistence
By Michael Bleaney

Full Text of this Article (PDF 63K)
Download the dataset (zip file)

Abstract: Some empirical research has suggested that inflation is more persistent under floating exchange rates. Theoretically, we should expect a higher variance of inflation persistence across countries under floating rates, but not necessarily a higher mean. It is shown that estimates of inflation persistence are biased upwards by underfitting mean shifts in the sample. After correction for mean shifts, there is evidence of greater inflation persistence in the post ­Bretton Woods period, but no evidence of variation across exchange rate regimes. Monetary growth has been much less accommodative of inflation since 1979, with no difference between EMS and non-EMS countries. [JEL E31, E50, F31, F41]

© 2001 International Monetary Fund