THE QUALITY OF MONETARY POLICY AND INFLATION PERFORMANCE: GLOBALIZATION AND ITS AFTERMATH

摘要

With few exceptions the last decades have seen reductions in inflation around the world. This experience is the result of many factors. In this paper, we seek to isolate one of the factors, namely, improvements in the quality of monetary policy. We estimate a gravity-like model and propose an exhaustive analysis of the potential role for a large number of institutional factors. Briefly, we find that institutional factors help explain inflation relative to the US experience, which is used as the benchmark. Nevertheless, a role for greater central bank autonomy is a feature of the 1980s and early 1990s only.