Disinflation in Spain : The Recent Experience /

This paper investigates the causes of the recent disinflation in Spain. A standard Phillips curve model is used to disentangle the contributions of three possible shocks: an adverse demand shock that raises unemployment, a positive supply shock resulting from relative price adjustments or structural...

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Dades bibliogràfiques
Autor principal: Sobczak, Nicolas
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1998.
Col·lecció:IMF Working Papers; Working Paper ; No. 1998/106
Accés en línia:Full text available on IMF
Descripció
Sumari:This paper investigates the causes of the recent disinflation in Spain. A standard Phillips curve model is used to disentangle the contributions of three possible shocks: an adverse demand shock that raises unemployment, a positive supply shock resulting from relative price adjustments or structural improvements in the labor market, and a credibility shock that lowers inflationary expectations. The main element underlying Spain's recent disinflation appears to be a fall in inflation expectations, thanks to the country's commitment to participate in Economic and Monetary Union from the start, and policy actions geared to that end.
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Descripció física:1 online resource (30 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students