Inflation persistence in OECD and non-OECD economies

Inflation is an important macroeconomic variable that affects the options of economic agents as well as their future expectations and it is often regarded as a result of domestic policies combined with the effects of globalization and therefore, a sign of how governments have been well succeeded in their political options. This issue is reflected in the mandate of many monetary authorities to maintain price stability and, therefore, no wonder it plays a critical role in policies’ design as its effects spread out in the economy as a whole either in terms of economic efficiency and equity, two of the most important concerns of any government’s policy. This explains the attention political authorities and economic agents in general have given to the evolution of inflation and the fact that its control has been stated as a priority for governments all over the world. These issues have became increasing relevant as the international monetary context has experienced important changes such as the adoption of inflation targeting regimes by some countries, the arrival of monetary union in Europe, and a general deflationist process in industrial economies