Asymmetric Effects of Economic Activityon Inflation : Evidence and Policy Implications /

This paper examines the evidence on asymmetries in the effects of activity on inflation. Data for the G-7 countries are found to strongly support the view that the inflation-activity relationship is nonlinear, with high levels of activity raising inflation by more than low levels decrease it. In the...

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Détails bibliographiques
Auteur principal: Laxton, Douglas
Autres auteurs: Meredith, Guy, Rose, David
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 1994.
Collection:IMF Working Papers; Working Paper ; No. 1994/139
Accès en ligne:Full text available on IMF
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245 1 0 |a Asymmetric Effects of Economic Activityon Inflation :   |b Evidence and Policy Implications /  |c Douglas Laxton, Guy Meredith, David Rose. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1994. 
300 |a 1 online resource (48 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper examines the evidence on asymmetries in the effects of activity on inflation. Data for the G-7 countries are found to strongly support the view that the inflation-activity relationship is nonlinear, with high levels of activity raising inflation by more than low levels decrease it. In the face of such asymmetries, the average level of output in an economy subject to demand shocks will be below the level of output at which there is no tendency for inflation to rise or fall, contrary to the implications of linear models. One implication of these results is that policymakers can raise the average level of output over time by responding promptly to demand shocks, thus reducing the variance of output around trend. 
538 |a Mode of access: Internet 
700 1 |a Meredith, Guy. 
700 1 |a Rose, David. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1994/139 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1994/139/001.1994.issue-139-en.xml  |z IMF e-Library