In adaptive learning literature it has been argued that the intensity of a Central Bank's (CB) interest rate response to expected inflation must be more than proportional. This article provides reassurance to the CB to some extent, showing that if it learns in a more sophisticated way than with...

In adaptive learning literature it has been argued that the intensity of a Central Bank's (CB) interest rate response to expected inflation must be more than proportional. This article provides reassurance to the CB to some extent, showing that if it learns in a more sophisticated way than with...

This paper uses the wavelet methodology to analyze the dynamics of inflation in Mexico at different frequencies over time. First, we analyze the monthly behavior of the headline, core, and noncore inflation from January 2007 to December 2018. Subsequently, the decomposition shows that the shocks...

This paper uses the wavelet methodology to analyze the dynamics of inflation in Mexico at different frequencies over time. First, we analyze the monthly behavior of the headline, core, and noncore inflation from January 2007 to December 2018. Subsequently, the decomposition shows that the shocks...

The Fisher-Seater (1993) methodology is applied to Guatemala data (1950-2002) in order to test for long-run neutrality of money. Real GDP, consumption, investment and public expenditure, and the monetary base and M2a are found to be I(1). Given this order of integration, we applied the Fisher...

This paper proposes a closed-economy new keynesian model to evaluate the role of high growth rate of monetary aggregates on the inflation determination in Chile the last years. We estimate a rational expectations equations system derived by the model through Generalized Method of Moments (GMM)....

Inflation expectations play a key role for a central bank under an inflation targeting regime. This paper analyses the inflation expectations of economic agents answering the Survey of Macroeconomic Expectations run by the Central Bank of the Dominican Republic (BCRD). Data is dis-aggregated by...

This paper main purpose is to analyze whether Latin America economies as a whole and on an individual basis have achieved price stability, or are moving towards this objective. After a revision of the literature on the quantitative definition of price stability, I adopt the one that has...

This document studies the recent evolution of the break-even-inflation implicit in the yields of long-term financial instruments in Mexico. In particular, it analyzes the dynamics of its main components: the long-run inflation expectation and the inflationary risk premium, which are estimated by...