02179cas a2200277 a 4500 AALejournalIMF018826 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484381595 1018-5941 BD-DhAAL BD-DhAAL Bems, Rudolfs. Is Inflation Domestic or Global? : Evidence from Emerging Markets / Rudolfs Bems, Francesca Caselli, Francesco Grigoli, Bertrand Gruss. Washington, D.C. : International Monetary Fund, 2018. 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 Following a period of disinflation during the 1990s and early 2000s, inflation in emerging markets has remained remarkably low and stable. Was this related to a global disinflation environment triggered by China's integration into world trade and the broader globalization in these economies, or to better domestic policies? In this paper, we review the inflation performance in a sample of 19 large emerging markets in the past couple of decades and quantify the impact of domestic and global factors in determining inflation. We document that the level, volatility, and persistence of inflation declined significantly, albeit not uniformly. Our results suggest that longer-term inflation expectations, linked to domestic factors, were the main determinant of inflation. External factors played a considerably smaller role. The results are a useful piece of evidence as emerging markets craft their monetary policies to navigate the future shift in global financial conditions. Mode of access: Internet Caselli, Francesca. Grigoli, Francesco. Gruss, Bertrand. IMF Working Papers; Working Paper ; No. 2018/241 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/241/001.2018.issue-241-en.xml IMF e-Library