Inflación e Incertidumbre Inflacionaria en Chile
AbstractThe purpose of this paper is to determine whether higher levels of inflation have been accompanied by higher levels of inflationary uncertainty in the Chilean economy. Modem economic theory has stressed the costs of inflationary uncertainty as well as the costs of a higher level of inflation. Moreover, it has been accepted that higher inflation levels and inflationary uncertainty are correlated. T'here are many of studies, with several methodologies that try to prove this hypothesis, specially for the United States. This paper uses a combination of ARIMA and GARCH methodologies in generating the usual conditional mean, as well as the conditional variance of the inflationary process which is a proxy for uncertainty. Once this variable is obtained, we verify, for the Chilean case, that higher levels of inflation have been historically accompanied by more inflationary uncertainty.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 15.
Date of creation: Oct 1997
Date of revision:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).
If references are entirely missing, you can add them using this form.