Identifying determinants of German inflation : an eclectic approach

Tatiana Fic

The paper applies an equilibrium correction model to discuss impacts of monetary, labour and external factors on the German inflation. The approach presented is of eclectic character and allows for examination which variables representative for various inflation theories matter empirically when analysing inflation processes in Germany. The results obtained suggest that inflation in Germany is determined by adjustment processes on the market of production factors, external shocks embodied in import prices, level of capacity utilisation and monetary policy actions.

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Year of publication:	March 2003
Authors:	Fic, Tatiana
Publisher:	Berlin, Germany : DIW Berlin, German Institute for Economic Research
Subject:	equilibrium correction model \| inflation modelling \| Germany \| Inflation \| Inflationstheorie \| Inflation theory \| Schätzung \| Estimation \| Deutschland