Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202991
Authors: 
Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska
Year of Publication: 
2019
Series/Report no.: 
Working Paper 1902
Abstract: 
Emerging market and developing economies (EMDEs) have experienced an extraordinary decline in inflation since the early 1970s. After peaking in 1974 at 17.3 percent, inflation in these economies declined to 3.5 percent in 2017. Despite a checkered history of managing inflation among many EMDEs, disinflation occurred across all regions. This paper presents a summary of our recent book, "Inflation in Emerging and Developing Economies: Evolution, Drivers, and Policies", that analyzes this remarkable achievement. Our findings suggest that many EMDEs enjoy the benefits of stability-oriented and resilient monetary policy frameworks, including central bank transparency and independence. Such policy frameworks need to be complemented by strong macroeconomic and institutional arrangements. Inflation expectations are more weakly anchored in EMDEs than in advanced economies. In EMDEs that do not operate inflation targeting frameworks, exchange rate movements tend to have larger and more persistent effects on inflation.
Subjects: 
Prices
Inflation
Monetary Systems
Monetary Policy
Globalization
JEL: 
E31
E42
E52
E58
F62
Document Type: 
Working Paper
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