The pass-through from depreciation to inflation: Chile 1986-2001
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| Format: | Artículo científico |
| Language: | en |
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Universidad de Chile
2003
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| _version_ | 1876450109945806848 |
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| author | Carlos Noton Norambuena |
| author_facet | Carlos Noton Norambuena |
| contents | The pass-through from depreciation to inflation: Chile 1986-2001 Carlos Noton Norambuena Economía y Finanzas up Pass through Inflation Devaluation A microeconomic model of imperfect Cournot competition is used to derive anexplicit endogenous relationship between price level and the nominal exchangerate. We obtain a mark-up that varies endogenously with consumer real income.Using the model, the estimated pass-through ?namely the impact of devaluationon inflation? ranges between 9-11% in the short run and between 21-32% in the long run for the period 1986-2001. However, the data supports astructural change in 1991, after which the pass-through coefficient declinessignificantly. Moreover, contrary to conventional wisdom, we find no evidence of procyclical pass-through. 2003 artículo científico 0304-2758 https://www.redalyc.org/articulo.oa?id=22130106 en http://www.redalyc.org/revista.oa?id=221 Estudios de Economía application/pdf Universidad de Chile Estudios de Economía (Chile) Num.1 Vol.30 |
| format | Artículo científico |
| id | redalyc_22130106 |
| institution | Redalyc |
| language | en |
| publishDate | 2003 |
| publisher | Universidad de Chile |
| spellingShingle | The pass-through from depreciation to inflation: Chile 1986-2001 Carlos Noton Norambuena Economía y Finanzas up Pass through Inflation Devaluation The pass-through from depreciation to inflation: Chile 1986-2001 Carlos Noton Norambuena Economía y Finanzas up Pass through Inflation Devaluation A microeconomic model of imperfect Cournot competition is used to derive anexplicit endogenous relationship between price level and the nominal exchangerate. We obtain a mark-up that varies endogenously with consumer real income.Using the model, the estimated pass-through ?namely the impact of devaluationon inflation? ranges between 9-11% in the short run and between 21-32% in the long run for the period 1986-2001. However, the data supports astructural change in 1991, after which the pass-through coefficient declinessignificantly. Moreover, contrary to conventional wisdom, we find no evidence of procyclical pass-through. 2003 artículo científico 0304-2758 https://www.redalyc.org/articulo.oa?id=22130106 en http://www.redalyc.org/revista.oa?id=221 Estudios de Economía application/pdf Universidad de Chile Estudios de Economía (Chile) Num.1 Vol.30 |
| title | The pass-through from depreciation to inflation: Chile 1986-2001 |
| topic | Economía y Finanzas up Pass through Inflation Devaluation |
| url | https://www.redalyc.org/articulo.oa?id=22130106 |