Understanding Inflation in Emerging and Developing Economies

Ha, Jongrim ; Kose, M. Ayhan ; Ohnsorge, Franziska L.

World Bank, Washington, DC

关键词: PRICES;    INFLATION;    MONETARY SYSTEM;    MONETARY POLICY;    GLOBALIZATION;   

DOI  :  10.1596/1813-9450-8761
RP-ID  :  WPS8761

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Emerging market and developing economies(EMDEs) have experienced an extraordinary decline ininflation since the early 1970s. After peaking in 1974 at17.3 percent, inflation in these economies declined to 3.5percent in 2017. Despite a checkered history of managinginflation among many EMDEs, disinflation occurred across allregions. This paper presents a summary of a recent book,"Inflation in Emerging and Developing Economies:Evolution, Drivers, and Policies," that analyzes thisremarkable achievement. The findings suggest that many EMDEsenjoy the benefits of stability-oriented and resilientmonetary policy frameworks, including central banktransparency and independence. Such policy frameworks needto be complemented by strong macroeconomic and institutionalarrangements. Inflation expectations are more weaklyanchored in EMDEs than in advanced economies. In EMDEs thatdo not operate inflation targeting frameworks, exchange ratemovements tend to have larger and more persistent effects on inflation.