IDEAS home Printed from https://ideas.repec.org/a/mve/journl/v37y2011i2p19-37.html
   My bibliography  Save this article

Disinflation in Chile, Colombia and Mexico: Do Domestic Monetary Policy Changes Deserve Credit?

Author

Listed:
  • William Miles

    (Wichita State University)

Abstract

This paper examines inflation in three Latin American nations. All of the nations have experienced higher-than-desired inflation in years past, and all have seen a palpable decrease in inflation in recent decades. We thus test for structural change in the dynamics of inflation. We find that all three have undergone some significant break in the mean or persistence of price changes. The break dates, however, do not generally correspond closely to any highly publicized changes in monetary policy such as inflation targeting or central bank independence. This finding contradicts some previous studies which purport to find a large effect of certain policies-formal targets, central bank independence, etc.-on inflation. Indeed further examination suggests some credit for disinflation should go to external factors. This is somewhat worrisome, as it indicates that a change to a more volatile global macroeconomic environment could make it costly for emerging markets to maintain price stability.

Suggested Citation

  • William Miles, 2011. "Disinflation in Chile, Colombia and Mexico: Do Domestic Monetary Policy Changes Deserve Credit?," Journal of Economic Insight (formerly the Journal of Economics (MVEA)), Missouri Valley Economic Association, vol. 37(2), pages 19-37.
  • Handle: RePEc:mve:journl:v:37:y:2011:i:2:p:19-37
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. William Miles & Samuel Schreyer, 2014. "Is monetary policy non-linear in Latin America? a quantile regression approach to Brazil, Chile, Mexico and Peru," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 169-183, April-Jun.

    More about this item

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mve:journl:v:37:y:2011:i:2:p:19-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ken Brown). General contact details of provider: http://edirc.repec.org/data/mveaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.