Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107921
Authors: 
Melnick, Rafi
Strohsal, Till
Year of Publication: 
2015
Series/Report no.: 
SFB 649 Discussion Paper 2015-009
Abstract: 
After the introduction of a stabilization program Israeli inflation decreased from 400% in 1985 to 2% in 2013. This paper analyzes how the remarkable transition process of Israel's disinflation took place. We reinforce the existing hypothesis that inflationmoved in distinct steps characterized by constant levels with short-lived fluctuations around them. Multiple endogenous breakpoint tests provide strong empirical evidence in favor of our claim. We find that the disinflation process is defined by three clear steps of high, medium and low inflation. The break dates are in line with major economic events that constitute the end and the beginning of each disinflation step.
Subjects: 
Inflation
Disinflation Steps
Multiple Breakpoint Tests
Inflation Targeting
JEL: 
E31
E52
E58
C22
Document Type: 
Working Paper

Files in This Item:
File
Size
559.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.