Irish research measures domestic and imported inflation


A research technical paper, published by the Central Bank of Ireland on December 19, tests the hypothesis that inflation in Ireland is caused more by imported inflation than by a domestic Phillips curve relationship.

Colin Bermingham, Dermot Coates, John Larkin, Derry O' Brien and Gerard O'Reilly attempt to explain Ireland's sharp deflation during the financial crisis, as CPI inflation hit a low of -6.6% in October 2009. Controlling for international factors, they find a relationship between the

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