Disinflations in Latin America and the Caribbean: a free lunch?
This paper challenges the conventional view according to which disinflations in Latin America -even from low and moderate peaks- have been carried out at no cost to output. After suggesting a new methodology that overcomes some of the shortcomings of the traditional methods used to measure the costs...
- Autores:
-
Hofstetter Gascón, Marc
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2006
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/7978
- Acceso en línea:
- http://hdl.handle.net/1992/7978
- Palabra clave:
- Inflation
Growth
Disinflation costs
Sacrifice ratios
Latin America
Inflación - América Latina - Modelos econométricos
Política monetaria - América Latina
Crecimiento económico - América Latina
E00, E31, E32, E52, F43
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
| Summary: | This paper challenges the conventional view according to which disinflations in Latin America -even from low and moderate peaks- have been carried out at no cost to output. After suggesting a new methodology that overcomes some of the shortcomings of the traditional methods used to measure the costs of disinflations, large sacrifice ratios are obtained for the 1970s and 80s. While the disinflation costs for the 90s remain negative, it is shown that an unusual combination of circumstances -i.e., factors related to capital inflows, structural reforms, and the peculiar recent inflation history- can explain this fortunate result. |
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