The Time-Varying Degree of Inflation Expectation Anchoring in Bolivia

Mauricio Mora Barrenechea, Juan Heredia Gómez and David Zeballos

No 8911, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper analyzes the time-varying degree of inflation expectations anchoring in Bolivia and, more precisely, whether inflation expectations have been in line with the inflation objectives announced by the Central Bank of Bolivia (BCB, for its acronym in Spanish) and if they have become better anchored over time. Two considerations are particularly relevant in this regard. First, the main sources of information are the BCB survey and Focus Economics survey, which only have data for short and medium-term inflation expectations. Second, monetary policy in Bolivia is under a monetary-targeting regime, so BCB projections represent the main references. The anchoring degree analysis of short-term inflation expectations was performed considering BCB projections, while the medium-term analysis used an implicit inflation target. In both cases, the results indicate there is a high degree of anchoring of inflation expectations in Bolivia, especially during the last four years. This study considers information from July 2005 to June 2017, with monthly frequency.

Keywords: Inflation expectations; Anchoring degree; BCB projections; Timevarying parameters model (search for similar items in EconPapers)
JEL-codes: C32 E31 E52 E58 (search for similar items in EconPapers)
Date: 2018-04
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publications.iadb.org/publications/english ... oring-in-Bolivia.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:idb:brikps:8911

DOI: 10.18235/0001131

Access Statistics for this paper

More papers in IDB Publications (Working Papers) from Inter-American Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Felipe Herrera Library ().