01712cas a2200253 a 4500 AALejournalIMF000247 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451960747 1018-5941 BD-DhAAL BD-DhAAL McDermott, C. Does the Gap Model Work in Asia? / C. McDermott, David Coe. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students There is considerable evidence from industrial countries that the output gap is an important determinant of inflation. We examine whether the gap model also works in developing, newly industrializing, and industrial Asian economies. Our output gaps are based on a new nonparametric estimation procedure for trend output that does not require an arbitrary specification of the degree to which the data are smoothed. We test simple versions of the gap model in which the change in inflation is related to the output gap, as well as to the money supply and the terms of trade. We conclude that the gap model works very well in almost all of the Asian economies we study. Mode of access: Internet Coe, David. IMF Working Papers; Working Paper ; No. 1996/069 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/069/001.1996.issue-069-en.xml IMF e-Library