# Database

# Table A.3.1 List of countries

|Country group|Countries|
|---|---|
|Advanced economies<br>(24)|Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Israel, Italy,<br>Japan, Korea, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland,<br>the United Kingdom, the United States|
||Argentina, Bangladesh, Brazil, Chile, China, Colombia, the Arab Republic of Egypt, India, Indonesia, the|
|EMDEs (23)|Islamic Republic of Iran, Kuwait, Malaysia, Mexico, Pakistan, Peru, Poland, the Russian Federation,<br>Saudi Arabia, South Africa, Thailand, Tunisia, Turkey, Zambia|

Note: The numbers in parentheses are the number of countries in the sample. EMDEs = emerging market and developing economies.

# Table A.3.2 Description of the variables

|Variable|Description|Sources|
|---|---|---|
||Current year, one-year-ahead, five-year-ahead inflation forecasts based||
|Inflation expectations<br>(advanced economies:<br>1990H1-2018H1<br>EMDEs: 1995H1-2018H1)|<br>on surveys conducted biannually for 30 countries by Consensus<br>Economics, complemented by current year, one-year-ahead, and five-<br>year-ahead annual average headline CPI inflation forecasts produced<br>biannually for 17 countries in the IMFs World Economic Outlook<br>database.|Consensus Economics,<br>Consensus Forecast;<br>IMF, World Economic<br>Outlook database|
|Inflation targeting regime<br>(1995-2016)|<br>A dummy variable equal to 1 for inflation targeting regime and 0 for no<br>inflation targeting regime.|IMF, Annual Report on<br>Exchange Arrangements and<br>Exchange Restrictions<br>database|
|Central bank<br>transparency<br>(1995-2014)|Index calculated from responses to 15 questions. To expand the sample,<br>the index was extrapolated to 2015-16 using 2014 data.|Dincer and Eichengreen (2014)|
|Exchange rate regime<br>(1995-2014)|The exchange rate regime classification developed in Shambaugh (2004)<br>is used to determine whether a country has a pegged or flexible exchange<br>rate. To expand the sample, the index was extrapolated to 2015-16 using<br>2014 data.|<br> <br>Shambaugh (2004)|
|Financial openness<br>(1995-2015)|Index of de jure capital account openness. To expand the sample, the<br>index was extrapolated to 2016 using 2015 data.|Chinn and Ito (2017)|
|Trade openness<br>(1995-2016)|Imports divided by domestic demand (domestic demand = GDP +<br>imports - exports).|IMF, International Financial<br>Statistics database|
|Gross public debt (1995-<br>2016)|Gross public debt divided by nominal GDP.|IMF, World Economic<br>Outlook database|
|Oil prices<br>(1990H1-2017H2)|Index is in nominal U.S. dollars.|World Bank, Commodity Price<br>Data (the Pink Sheet)|
|Food prices<br>(1990H1-2017H2)|Index is in nominal U.S. dollars.|World Bank, Commodity Price<br>Data (the Pink Sheet)|
|Global liquidity<br>(1990H1-2017H2)|International claims on all sectors (annual change).|Bank for International<br>Settlements, Global Liquidity<br>Indicators database|
|Global output gap<br>(1990H1-2017H2)|Real GDP-weighted average of country specific output gaps estimated<br>using a multivariate filter.|World Bank (2018)|

Note: CPI = consumer price index; EMDEs = emerging market and developing economies; IMF = International Monetary Fund.

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