Title

Explaining Peak Inflation Rates Prior to Disinflationary Policy Adjustments or What Got Us into This Mess?

Document Type

Article

Publication Date

2014

Publication Source

Applied Economics

Abstract

This study investigates, using annual data from 1974–2004, whether unionization rates, trade openness and central bank independence can help explain cross-national and inter-temporal variations in level of peak inflation prior to a disinflationary policy adjustment. I find that unionization is positively associated with both peak inflation rates whereas more independent central banks and trade openness are correlated with lower inflation levels. These results are robust to controlling for the high inflation decade of the 1970s and to using average (rather than peak) inflation as the explanatory variable.

Inclusive pages

394-399

ISBN/ISSN

0003-6846

Comments

Permission documentation is on file.

Publisher

Taylor & Francis

Volume

46

Peer Reviewed

yes

Issue

4

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