There are two pertinent questions: first, which measure of core inflation provides reliable information about domestic underlying inflationary pressures by removing short-term noise from headline inflation due to transitory shocks, and second, whether different measures of underlying inflation can better forecast developments in headline inflation.
The crisis is usually dated as having begun with the float of the Thai baht in July 1997, though the problems had been building for some time before that. The events of 1997 and 1998 profoundly affected the region’s economic growth. In a speech earlier this year, I reviewed the key events of the crisis.