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Monetary policy regime change and regional inflation dynamics : Looking through the lens of sector-level data for Korea
| Title |
Monetary policy regime change and regional inflation dynamics
Similar Titles
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|---|---|
| Sub Title | Looking through the lens of sector-level data for Korea |
| Material Type | Reports |
| Author(English) |
Choi, Chi-Young; Lee, Joo Yong; Rîis’n OÛSullivan |
| Publisher |
Seoul : The Bank of Korea |
| Date | 2015 |
| Series Title; No | BOK Working Paper |
| Pages | 49 |
| Subject Country | South Korea(Asia and Pacific) |
| Language | English |
| File Type | Documents |
| Original Format | |
| Subject | Economy < Economic Conditions |
| Holding | The Bank of Korea; KDI School |
| License |  |
Abstract
This paper explores the impact of the adoption of inflation targeting (IT) on the dynamics of city-level inflation in Korea using both aggregate and sector-level data. When looking at aggregate regional inflation, we find that the mean, volatility and persistence fell in all cities in the wake of the monetary policy regime change, consistent with other evidence in the literature. We also note a narrowing of the dispersion of regional inflation across cities and a greater degree of regional co-movement. Delving more deeply into the disaggregate data reveals additional insights however. For most of the changes we observe in the dynamics of regional inflation, we find that the aggregate effects are being driven primarily by sectors that fall into the ‘Services’ category. (The rest omitted)
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