TY - BOOK ID - 133406000 TI - Mind the Gap: City-Level Inflation Synchronization PY - 2022 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Economics: General KW - Inflation KW - Infrastructure KW - Estimation KW - Single Equation Models KW - Single Variables: Cross-Sectional Models KW - Spatial Models KW - Treatment Effect Models KW - Time-Series Models KW - Dynamic Quantile Regressions KW - Dynamic Treatment Effect Models KW - Diffusion Processes KW - Price Level KW - Deflation KW - Financial Crises KW - Economic Development: Urban, Rural, Regional, and Transportation Analysis KW - Housing KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Prices KW - Consumer price indexes KW - Consumer prices KW - Global financial crisis of 2008-2009 KW - Financial crises KW - National accounts KW - Currency crises KW - Informal sector KW - Economics KW - Price indexes KW - Global Financial Crisis, 2008-2009 KW - Saving and investment KW - Lithuania, Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:133406000 AB - The post-pandemic rise in consumer prices across the world has renewed interest in inflation dynamics after decades of global disinflation. This paper provides a spatial investigation of inflation synchronicity at the city level in Lithuania using disaggregated monthly data during the period 2000–2021. The empirical analysis provides strong evidence that (i) the co-movement of city-level inflation rates—estimated using the instantaneous quasi-correlation approach—is significantly weaker than the extent of synchronization suggested by the simple correlation analysis; (ii) there is substantial heterogeneity in the instantaneous quasi-correlation of inflation subcomponents between city pairs; and (iii) there are significant changes in the degree of city-level synchronization over time, reflecting important economic developments in history such as the global financial crisis, the adoption of euro, and the COVID-19 pandemic. ER -