All governments claim to want low inflation - but not all achieve it. While poorer countries generally fare worse, inflation rates can differ markedly even between equally wealthy countries. Turkey and Korea had similar levels of per capita income at the start of the 1980s. But while Turkey's inflation ran at an average of 60% a year over the next two decades, Korea's was only 6%.

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February 2005     Paper Number CEPCP170

Download PDF - In brief... More inequality means higher inflation