Global output gap and domestic inflation in China

Zhang, Chengsi; Xingchen, Ji; Dai, Wensheng

doi:10.2298/pan150402034z

Cited by 4 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Baxa, Plašil, and Vašíček (2013) apply dynamic dynamics modeling (DMA) to confirm the systematic relationship between real activity and inflation. Zhang (2017) transcribes the basic inflation dynamics model as an expanded form of a conventional PC, to which it adds, besides the domestic production gap, also foreign.…”

Section: Summary Of Model Approaches To Estimating Long-term Pcmentioning

confidence: 99%

Analysis of Substitution Changes in the Phillips Curve in V4 Countries Over the Course of Economic Cycles

Kadeřábková¹,

Jašová²,

Holman³

2020

IJoES

View full text Add to dashboard Cite

Section: Summary Of Model Approaches To Estimating Long-term Pcmentioning

confidence: 99%

Analysis of Substitution Changes in the Phillips Curve in V4 Countries Over the Course of Economic Cycles

Kadeřábková¹,

Jašová²,

Holman³

2020

IJoES

View full text Add to dashboard Cite

“…Due to growing influence of external factors domestic inflation becomes more sensitive to global output gap. The influence of global slack on domestic inflation is relatively greater than its domestic counterpart (Zhang, Ji, & Dai, 2017…”

mentioning

confidence: 99%

Disaggregated Analysis Of Phillips Curve In Pakistan

2021

cibg

View full text Add to dashboard Cite

This study has estimated disaggregated Phillips Curve (PC) in case of Pakistan for food, nonfood and core inflation using annual time series data. The main objective of the study is to compare traditional and open economy Phillips curves using global output gap as external determinant of inflation. The study has estimated global slack hypothesis by augmenting traditional PC with global output gap as measures of global determinant. The accurate measurement of slope of PC has significant role in effective monetary policy formulation to control inflation through managing aggregate demand. There is abundant literature investigating whether Phillips curve still holds, weakened or strengthened as it used to be before 1990. Although less focused in case of Pakistan, for other countries the literature shows evidence of flattening of PC due to many reasons mainly globalization. The results of this study indicate existence of global slack hypothesis where both domestic and global output gaps affect overall inflation in Pakistan positively and significantly. However, when estimated for food and nonfood inflation separately for the period 1976-2019, domestic output gap in presence of global output gap does not affect nonfood inflation in Pakistan. Similarly, for core inflation domestic output gap in presence of global output gap does not affect core inflation in Pakistan. This finding is consistent with existing literature arguing that central banks' monetary policy intervention significantly affects relation between domestic output gap and core inflation. The results have also indicated that global economic crisis 2008 positively affected overall, food, nonfood and core inflation in Pakistan. The main policy implication of the study is that demand management policies in Pakistan need to be accompanied with supply side price controlling measures considering global economic factors.

show abstract