Low inflation

Evolving International Inflation Dynamics: Evidence from a Time-varying Dynamic Factor Model

JEL codes: 
E30, E52
Version Date: 
Feb 2008

Several industrialised countries have had a similar inflation experience in the past 30 years, with inflation high and volatile in the 1970s and the 1980s but low and stable in the most recent period. We explore the dynamics of inflation in these countries via a time-varying factor model.