Appendix A6.1: Definition of Variables

Variable Name

Variable Definition

Data Source

PPP-GDP ratio

Aggregated PPP total investment of PPP projects (as a percentage of GDP)

World Bank, Private Participation in Infrastructure Database

PIP-GDP ratio

Aggregated private investment in PPP projects (as a percentage of GDP)

World Bank, Private Participation in Infrastructure Database

Credit-GDP ratio

Total credit extended by domestic banks to private nonfinance sector as a percentage of GDP

Bank for International Settlements

Bond-GDP ratio

Total debt securities outstanding in both international and domestic markets as a percentage of GDP

Bank for International Settlements

Government bond-GDP ratio

Outstanding debt securities issued by governments as a percentage of GDP

Bank for International Settlements

Corporate bond-GDP ratio

Outstanding debt securities issued by nongovernment entities (difference between total outstanding debt securities and government debt securities) as a percentage of GDP

Bank for International Settlements

Stock market capitalization-GDP

Stock market capitalization as a percentage of GDP

World Bank, World Development Indicators Database

Log of GDP per capita

Natural logarithm of GDP per capita (current $)

World Bank, World Development Indicators Database

GDP growth

Annual GDP growth rate (percentage)

World Bank, World Development Indicators Database

Inflation rate

Annual CPI growth rate (percentage)

World Bank, World Development Indicators Database

GDP growth volatility

Standard deviation of rolling 10-year annual GDP growth rate

World Bank, World Development Indicators Database

Inflation volatility

Standard deviation of rolling 10-year annual CPI price change

World Bank, World Development Indicators Database

Real effective exchange rate volatility

Standard deviation of monthly prices changes of real effective exchange rate

Calculated from Bank for International Settlements data

Exchange rate regime

Exchange rate regime according to standard Shambaugh (2004)a classification (1 = peg, 0 = nonpeg)

Shambaugh (2004)

Log of government stability index

Natural logarithm of ICRG government stability index

ICRG dataset

CPI = consumer price index, GDP = gross domestic product, ICRG = International Country Risk Guide, PIP= private investment in PPP, PPP = public-private partnership.

a Jay Shambaugh. 2004. The Effect of Fixed Exchange Rates on Monetary Policy. Quarterly Journal of Economics 119 (1): pp. 301-352.

Source: Data sources cited.