Indexing, exchange rate policy and effects of inflationary feedback in Latin America

Paul D. McNelis ()

Brazilian Journal of Political Economy, 1986, vol. 6, issue 4, 607-623

Abstract: This paper examines inflationary adjustment processes in Argentina, Brazil,Chile, Ecuador, Peru, and Uruguay with time-varying estimation techniques to determine therelationship between inflationary inertia or feedback effects from past to current inflationand the degree of indexation of wages and exchange rates to past inflation rates. The resultsshow that reductions in the degree of exchange rate linkage to past inflation have not beenparticularly helpful in larger or relatively more diversified economies (such as Argentina,Brazil, or Chile), while reductions in wage linkages to past inflation rates have had strongbut short-lived effects. JEL Classification: F31; E31; J38.

Keywords: Exchange rate; inflation; stabilization; wage policy (search for similar items in EconPapers)
Date: 1986
References: Add references at CitEc
Citations:

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... ticle/view/1822/1808 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:6:y:1986:i:4:p:607-623:id:1822

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().