U.K. Inflation and Relative Prices over the Last Decade : How Important was Globalization?

Author/Editor:

Benjamin L Hunt

Publication Date:

August 1, 2007

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In this paper, the IMF's new Global Economy Model (GEM) is used to estimate the relative importance of a number of factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro Area and the United States. The simulation results indicate that while the direct effect of globalization has had a larger effect in the United Kingdom than in either the United States or the Euro Area, it explains only a portion of the developments and U.K. specific factors played an important role.

Series:

Working Paper No. 07/208

Subject:

English

Publication Date:

August 1, 2007

ISBN/ISSN:

9781451867725/1018-5941

Stock No:

WPIEA2007208

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

28

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