Measures of core inflation in Korea
نویسندگان
چکیده
Meanwhile, having generally enjoyed low and stable prices since the early 2000s, most of the key economies in the world are now going through the final phase of a boom and bust cycle in asset (housing) prices based upon liquidity expansion, owing to sustained low interest rates and financial market innovations such as derivatives. In this regard, the argument may be put forward that monetary policy may fail to cope properly with increasing pressure on asset prices under an inflation targeting regime using headline CPI as its target index, which does not include asset prices.
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