02036cas a2200253 a 4500 AALejournalIMF011371 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463923969 1018-5941 BD-DhAAL BD-DhAAL Osorio Buitron, Carolina. Inflation Dynamics in Asia : Causes, Changes, and Spillovers From China / Carolina Osorio Buitron, Filiz Unsal. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (20 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 perception that Asia's inflation dynamics is driven by idiosyncratic supply shocks implies, as a corollary, that there is little scope for a policy reaction to a build-up of inflationary pressures. However, Asia's fast growth and integration over the last two decades suggest that the drivers of inflation may have changed, and that domestic demand pressures may now play a larger role than in the past. This paper presents a quantitative analysis of inflation dynamics in Asia using a Global VAR (GVAR) model, which explicitly incorporates the role of regional and global spillovers in driving Asia's inflation. Our results suggest that over the past two decades the main drivers of inflation in Asia have been monetary and supply shocks, but also that, in recent years, the contribution of these shocks has fallen, whereas demand-side pressures have started to emerge as an important contributor to inflation in Asia. Mode of access: Internet Unsal, Filiz. IMF Working Papers; Working Paper ; No. 2011/257 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/257/001.2011.issue-257-en.xml IMF e-Library