Revisiting the price puzzle in Chile

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dc.contributor.authorPedersen, Michael
dc.coverage.spatialCHILEes_ES
dc.date.accessioned2020-05-27T19:15:22Z
dc.date.available2020-05-27T19:15:22Z
dc.date.issued2017-04
dc.description.abstractEconomic theory argues that a contractionary monetary policy has a negative impact on inflation. Despite this, evidence from the empirical literature frequently finds that the estimated impulse-response function of a vector autoregressive (VAR) model implies that inflation increases after an unexpected monetary shock. This is referred to as the price puzzle and was first noted by Sims (1992) for a number of industrialized countries. The present note revisits the price puzzle in Chile with data from 2002 to 2016. Even though the results are not statistically significant, they do show an interesting feature. In line with the main part of the earlier literature, inflation increases after an unexpected monetary shock in the pre-crises period suggesting the presence of a price puzzle in Chile. After the crisis, however, inflation decreases following a monetary shock. This is in contrast with earlier evidence for Chile suggesting that the price puzzle is no longer present.es_ES
dc.format.pdf
dc.format.extentSección o Parte de un Documento
dc.format.mediump. 072-079
dc.identifier.issn0717-3830
dc.identifier.urihttps://hdl.handle.net/20.500.12580/4860
dc.identifier.urihttps://ideas.repec.org/a/chb/bcchni/v20y2017i1p072-079.html
dc.language.isoenes_ES
dc.publisherBanco Central de Chilees_ES
dc.relation.ispartofEconomía chilena, vol. 20, no. 1
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 Chile*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/cl/*
dc.subjectPOLÍTICA MONETARIAes_ES
dc.subjectINFLACIÓNes_ES
dc.subjectPRECIOSes_ES
dc.titleRevisiting the price puzzle in Chilees_ES
dc.type.docNota de Investigación

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Economía chilena (Notas de investigación)