The Relationship between the Level and Variability of Inflation: Theory and Evidence
AbstractThis paper emphasizes the role played by asymmetric stabilization policies in producing the widely reported positive association between the level and variability of inflation. A simple theoretical model is constructed which shows how asymmetric policies give rise to this association. The empirical findings presented provide support to the proposition that variations in inflation uncertainty are policy-induced. Copyright 1989 by John Wiley & Sons, Ltd.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.
Volume (Year): 4 (1989)
Issue (Month): 3 (July-September)
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Web page: http://www.interscience.wiley.com/jpages/0883-7252/
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