U.K. Inflation and Relative Prices over the 1997 to 2006 Period: How Important was Globalization?

2009 ◽  
Vol 9 (3) ◽  
pp. 1850177
Author(s):  
Benjamin L. Hunt
Keyword(s):  
United States ◽  
United Kingdom ◽  
Euro Area ◽  
Global Economy ◽  
The United States ◽  
Relative Importance ◽  
Relative Prices ◽  
The United Kingdom ◽  
Number Of Factors ◽  
Specific Factors

In this paper, the IMF's new Global Economy Model (GEM) is used to estimate the relative importance of a number of factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro area and the United States. The simulation results indicate that although the direct effect of globalization has had a larger effect in the United Kingdom than in either the United States or the Euro area, it explains only a portion of how the developments and U.K. specific factors played an important role.

Cross-Cutting Themes in Major Article IV Consultations

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Euro Area ◽  
Capital Flows ◽  
World Economy ◽  
The United States ◽  
Policy Responses ◽  
The United Kingdom ◽  
The World ◽  
Cross Country

This paper is part of a broader on-going effort to bring a more cross-country perspective to bilateral surveillance, taking advantage of a cluster of Article IV consultations with five systemically important economies concluded in July. With the five economies—the United States, the Euro area, China, Japan, and the United Kingdom—accounting for two-thirds of global output and three quarters of capital flows, the nature of linkages and consistency of policy responses across the systemic five (S5) has important implications for the world economy.

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