Pricing Process in Mexico: New Evidence on the Inflation Dynamics
We analyze the inflation dynamics in Mexico during inflation targeting period by a GMM estimate of the Hybrid New Keynesian Phillips Curve in its open and closed economy versions. We update and discuss previous results and expand the capacity of this tool to analyze inflationary dynamics by incorpor...
- Autores:
-
Loría Díaz de Guzmán, Dr. Eduardo Gilberto
Valdez Bonecchi, Lic. Gustavo Javier
Robles Juárez, Lic. Mario
- Tipo de recurso:
- Fecha de publicación:
- 2022
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- eng
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/30998
- Acceso en línea:
- http://hdl.handle.net/10784/30998
- Palabra clave:
- Inflation Dynamics
Hybrid New Keynesian Phillips Curve
Generalized Method of Moments
Structural Change
Open Economy
Dinámica de la Inflación
Curva de Phillips Neokeynesiana Híbrida
Método Generalizado de Momentos
Cambio Estructural
Economía Abierta
- Rights
- License
- Acceso abierto
| Summary: | We analyze the inflation dynamics in Mexico during inflation targeting period by a GMM estimate of the Hybrid New Keynesian Phillips Curve in its open and closed economy versions. We update and discuss previous results and expand the capacity of this tool to analyze inflationary dynamics by incorporating the exchange rate on labor costs. We find: a) robust evidence of adaptive and rational expectations; b) incorporating the exchange rate improves the inflation fit; c) this version of the Phillips Curve has strengthened since Great Recession, and e) expectations formation process changes during inflationary episodes according to the origin of shocks |
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