The Relationship between the Level and Variability of Inflation: Theory and Evidence
This 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.
Volume (Year): 4 (1989)
Issue (Month): 3 (July-September)
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- Demetriades, Panikos, 1988. "Macroeconomic aspects of the correlation between the level and variability of inflation," Economics Letters, Elsevier, vol. 26(2), pages 121-124.
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- Cukierman, Alex & Wachtel, Paul, 1979. "Differential Inflationary Expectations and the Variability of the Rate of Inflation: Theory and Evidence," American Economic Review, American Economic Association, vol. 69(4), pages 595-609, September.
- A. R. Pagan & A. D. Hall & P. K. Trivedi, 1983. "Assessing the Variability of Inflation," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 585-596.
- Logue, Dennis E & Willett, Thomas D, 1976. "A Note on the Relation between the Rate and Variability of Inflation," Economica, London School of Economics and Political Science, vol. 43(17), pages 151-58, May.
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