Mind the Gap : City-Level Inflation Synchronization /

The post-pandemic rise in consumer prices across the world has renewed interest in inflation dynamics after decades of global disinflation. This paper provides a spatial investigation of inflation synchronicity at the city level in Lithuania using disaggregated monthly data during the period 2000-20...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Cevik, Serhan
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2022.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2022/166
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Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:The post-pandemic rise in consumer prices across the world has renewed interest in inflation dynamics after decades of global disinflation. This paper provides a spatial investigation of inflation synchronicity at the city level in Lithuania using disaggregated monthly data during the period 2000-2021. The empirical analysis provides strong evidence that (i) the co-movement of city-level inflation rates-estimated using the instantaneous quasi-correlation approach-is significantly weaker than the extent of synchronization suggested by the simple correlation analysis; (ii) there is substantial heterogeneity in the instantaneous quasi-correlation of inflation subcomponents between city pairs; and (iii) there are significant changes in the degree of city-level synchronization over time, reflecting important economic developments in history such as the global financial crisis, the adoption of euro, and the COVID-19 pandemic.
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Beschreibung:1 online resource (17 pages)
Format:Mode of access: Internet
ISBN:9798400218613
ISSN:1018-5941
Zugangseinschränkungen:Electronic access restricted to authorized BRAC University faculty, staff and students