International Evidenceon Tradables and Nontradables Inflation
March 1, 1994
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Summary
Using 1970-85 sectoral data for the OECD we find that inflation in nontradable good exceeds inflation in tradables. We identify a demand shift towards nontradables and faster growth of total factor productivity in the tradable goods sector as the prime causes of the differential inflation. In addition, disinflation attempts and the exchange rate regime appear to have exerted significant influence on the relative inflation rate.
Subject: Exchange rate arrangements, Expenditure, Foreign exchange, Income, Inflation, National accounts, Prices, Production, Productivity, Total factor productivity
Keywords: core EMS economy, Europe, exchange rate, Exchange rate arrangements, Income, Inflation, nontradable goods, oil price increase, Productivity, relative price, sector result, supply curve, Total factor productivity, WP
Pages:
36
Volume:
1994
DOI:
Issue:
033
Series:
Working Paper No. 1994/033
Stock No:
WPIEA0331994
ISBN:
9781451979282
ISSN:
1018-5941
Notes
Study based on 1970-84 sectoral data for the OECD.
