01694cas a2200253 a 4500 AALejournalIMF007492 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848533 1018-5941 BD-DhAAL BD-DhAAL Garcia-Herrero, Alicia. The Domestic and Foreign Price Gaps in the P-STAR Model : Evidence from Spain / Alicia Garcia-Herrero, Manoj Pradhan. Washington, D.C. : International Monetary Fund, 1999. 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 The paper uses the P-STAR model to analyze Spanish prices from 1970 to 1996, adding the foreign price gap to the standard domestic definition of the P-STAR model (the domestic price gap) to assess the role German price movements played in Spanish inflation. The domestic price gap turns out to be the major explanatory variable for inflation, even after the entrance of Spain in the exchange rate mechanism (ERM). This result suggests that the successful disinflation experienced in Spain in the past few years may be more related to domestic conditions than to foreign ones. Mode of access: Internet Pradhan, Manoj. IMF Working Papers; Working Paper ; No. 1998/064 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/064/001.1998.issue-064-en.xml IMF e-Library