Inflation Dynamics in Latin America

Manuel Ramos Francia and Carlos Capistrán ()

No 2006-11, Working Papers from Banco de México

Abstract: We analyze inflation's persistence in the 1980-2006 period for the ten largest Latin American economies using univariate time-series techniques. Although the estimated degree of inflation persistence appears to be different across countries, for the region as a whole the persistence seems to be very high. However, the estimated degree of persistence falls in all countries once we permit structural breaks in the mean of inflation. The timing of these breaks coincides with shifts in the monetary policy regimes and is similar across countries. Regardless of the changes in the mean, the degree of persistence appears to be decreasing in the region, even though for some countries persistence does not seem to be changing.

JEL-codes: C22 E31 E42 (search for similar items in EconPapers)
Date: 2006-11
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: INFLATION DYNAMICS IN LATIN AMERICA (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:bdm:wpaper:2006-11

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