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https://doi.org/10.1080/1331677X.2017.1305788

The investigation of inflation persistence in Croatia in the period of 2005–2013

Piotr Misztal orcid id orcid.org/0000-0003-2609-3439


Puni tekst: engleski pdf 2.500 Kb

str. 273-289

preuzimanja: 488

citiraj


Sažetak

The aim of this article is to analyse the inflation persistence
phenomenon in the theory of economics and in Croatian economy. In
the economic literature there are only few studies on the phenomenon
of inflation persistence in Croatia. That is why we try to fill the gap in
this area by analysing the phenomenon of inflation persistence in the
Croatian economy, with particular emphasis of this phenomenon for
different groups of goods and services. In this article we use a research
method based on literature studies in the field of macroeconomics
and international finance and econometric methods (Bayesian
Vector Autoregression Model [BVAR]). All statistical data used in
this article were monthly data and covered the period from January
2005 to December 2013 (108 months) and their source was United
Nations Economic Commission for Europe (UNECE) Statistical Division
Database. It provides detailed statistical information on countries
in Europe, North America and Central Asia. The calculated inflation
persistence coefficient in Croatia stood at 0.88 in the period 2005–
2013, which apparently confirmed the occurrence of high inflation
persistence in this economy. High inflation persistence means a slow
return of inflation to its long-run value after a shock. A high degree of
inflation persistence should be a signal for the economic authorities
of a country to initiate indispensable institutional and labour market
reforms which usually increase flexibility of domestic economy and
lead to a reduced degree of inflation persistence.

Ključne riječi

Inflation rate; consumer prices; producer prices; Croatia

Hrčak ID:

180816

URI

https://hrcak.srce.hr/180816

Datum izdavanja:

1.12.2017.

Posjeta: 1.035 *