The Dynamics of Inflation Persistence in Chile

Pablo Pincheira

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: We show that some standard measures of inflation persistence in Chile have increased sharply in recent years. For the sample period between August 1998 and July 2008 we found that the half life of a shock to headline inflation is about 3 years. This is much higher that the half life of about 1 year computed in previous sample periods. When considering a measure of core inflation excluding food and energy our results are even stronger: for the sample period between August 2002 and July 2008 we found that the half life of a shock to this measure of core inflation is about 4 years and a half. This is much higher that the half life of less than a year computed in previous sample periods. This increase in inflation persistence is robust to changes in the univariate specification fitted to different inflation processes.

Date: 2008-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/DTBC_505.pdf (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:chb:bcchwp:505

Access Statistics for this paper

More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Alvaro Castillo ().