Adopción de metas de inflación y su impacto en las expectativas de inflación y volatilidad del crecimiento económico: evidencia empírica para Bolivia
Inflation targeting and its impact on the inflation expectations and economic growth volatility: an empirical assessment for Bolivia
Daney Valdivia and
Lilian Loayza
MPRA Paper from University Library of Munich, Germany
Abstract:
Introduction of inflation targeting has global effects on dynamic of prices and economic growth. In case of a developing country with an increasing remonetization since 2007 – 2008 and modest growing later than 2009 it’s important to assess the adoption of a new regime and how it helps to both control inflation dynamics and expectations; and how it stabilize the business cycle of economic growth. In order to assess inflation targeting we use the methodology applied by Vega and Winkelried (2006). Results have shown that in case of the Bolivian economy the adoption of the regime is significant. In this sense, implementation of inflation targeting reduces monthly inflation expectations, -7.33% and its structural component in -1.02%. At the same time, the variance of output reduces -1.2%.
Keywords: Inflation targeting; propensity score; economic growth (search for similar items in EconPapers)
JEL-codes: C52 E32 E42 E52 (search for similar items in EconPapers)
Date: 2010-11-18, Revised 2011-08-25
New Economics Papers: this item is included in nep-mac
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