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Inflation Experiences in Latin America, 2007-2008


  • Mark Weisbrot
  • David Rosnick


This paper looks briefly at the recent inflation experiences of ten Latin American countries: Brazil, Mexico, Venezuela, Colombia, Chile, Peru, Ecuador, Guatemala, the Dominican Republic, and Bolivia. The authors construct a core inflation index (excluding food and energy), and look at three-month changes in both headline and core inflation. The paper focuses on the increase in inflation from April 2007 to July 2008, driven by a surge in food and energy prices worldwide. These prices have since dropped considerably. The authors conclude that macroeconomic policy that does not take into account the temporary nature of these price shocks may result in an unnecessary slowing of growth, with reduced output and employment.

Suggested Citation

  • Mark Weisbrot & David Rosnick, 2009. "Inflation Experiences in Latin America, 2007-2008," CEPR Reports and Issue Briefs 2009-05, Center for Economic and Policy Research (CEPR).
  • Handle: RePEc:epo:papers:2009-05

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    References listed on IDEAS

    1. David G. Blanchflower & Alex Bryson, 2004. "What Effect Do Unions Have on Wages Now and Would Freeman and Medoff Be Surprised?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 383-414, July.
    2. Heather Boushey & Shawn Fremstad & Rachel Gragg & Margy Waller, 2007. "Understanding Low-Wage Work in the United States," CEPR Reports and Issue Briefs 2007-09, Center for Economic and Policy Research (CEPR).
    3. John Schmitt, 2008. "Unions and Upward Mobility for Latino Workers," CEPR Reports and Issue Briefs 2008-28, Center for Economic and Policy Research (CEPR).
    4. Frank Levy & Peter Temin, 2007. "Inequality and Institutions in 20th Century America," NBER Working Papers 13106, National Bureau of Economic Research, Inc.
    5. John Schmitt, 2008. "The Union Wage Advantage for Low-Wage Workers," CEPR Reports and Issue Briefs 2008-17, Center for Economic and Policy Research (CEPR).
    6. Barry T. Hirsch & Edward J. Schumacher, 2004. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 689-722, July.
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    More about this item


    Latin America; Inflation;

    JEL classification:

    • E - Macroeconomics and Monetary Economics
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O - Economic Development, Innovation, Technological Change, and Growth
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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