International Evidenceon Tradables and Nontradables Inflation

Author/Editor:

Holger C. Wolf ; Alberto Giovannini ; Jose De Gregorio

Publication Date:

March 1, 1994

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:

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.

Series:

Working Paper No. 1994/033

Subject:

Exchange rate arrangements Expenditure Foreign exchange Income Inflation National accounts Prices Production Productivity Total factor productivity

Notes:

Study based on 1970-84 sectoral data for the OECD.

English

Publication Date:

March 1, 1994

ISBN/ISSN:

9781451979282/1018-5941

Stock No:

WPIEA0331994

Pages:

36

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