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Globalization, inflation and global output gap
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2022 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The inflation rate has been relatively low and stable in Sweden and several other economies around the world in the recent decades. This despite economic conditions that earlier has been associated with increases in the inflation rate. Simultaneously, international integration has increased and the inflation rate seem to co-move to a higher degree across countries than earlier. This set of conditions has brought up the interest for several researchers to re-consider the traditional Phillips curve relationship and evaluate whether domestic inflation rate depends on foreign factors in terms of global resource utilization. This paper address the question of global factors effects on domestic inflation for Sweden using different versions of a Phillips curve equation extended with a trade-weighted global output gap. The results indicate that global output gap affects the inflation rate in Sweden and it seem that these effects have increased over the sample period.  

Place, publisher, year, edition, pages
2022. , p. 45
Series
Hanna Örnqvist
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-481235OAI: oai:DiVA.org:uu-481235DiVA, id: diva2:1685977
Educational program
Master Programme in Economics
Supervisors
Available from: 2022-08-10 Created: 2022-08-07 Last updated: 2022-08-10Bibliographically approved

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