Artikel
Potential output, output gap and high inflation in Argentina (2007-2015)
I investigate the causes of the high inflation Argentina experienced from 2007 to 2015. To do so, I estimate the potential output and the output gap using the Blanchard-Quah decomposition for this country and compare it to the estima- tions I obtained for other economies in the region were inflation was kept under control. I find that there are some country specific patterns in Argentina that can explain the high inflation observed during the analyzed years. First of all, Argentinean potential output grew at a slower pace than the rest of the coun- tries, most notably since 2011. Second, there has been in Argentina a positive and increasing output gap since 2007, which was highly correlated with the inflation rate. Last, a comparison between the actual interest rate and the one derived from an ex-post monetary policy rule reveals that monetary policy was too lose in Argentina but that has not been the case in the rest of the countries. The policy implications of these findings are straightforward: Argentina could have reduced inflation by following a monetary rule, just like the rest of the Central Banks in the region seem to have done.
- Alternative title
-
El producto potencial, la brecha del producto y la inflación en Argentina (2007-2015)
- Language
-
Englisch
- Bibliographic citation
-
Journal: Estudios de Economía ; ISSN: 0718-5286 ; Volume: 47 ; Year: 2020 ; Issue: 1 ; Pages: 5-29
- Classification
-
Wirtschaft
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Price Level; Inflation; Deflation
Central Banks and Their Policies
- Subject
-
Potential output
Output gap
Inflation
Argentina
Structural VARs
- Event
-
Geistige Schöpfung
- (who)
-
Campos, Luciano
- Event
-
Veröffentlichung
- (who)
-
Universidad de Chile, Departamento de Economía
- (where)
-
Santiago de Chile
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Campos, Luciano
- Universidad de Chile, Departamento de Economía
Time of origin
- 2020
Other Objects (12)
Inflation Expectation Uncertainty, Inflation and the Output Gap
Inflation expectation uncertainty, inflation and the output gap
Forecasting Inflation with an Uncertain Output Gap
Forecasting inflation with an uncertain output gap
Estimation of Potential GDP and output Gap. Comparative Perspective
The Impact of Financial Factors on the Output Gap and Estimates of Potential Output Growth
Norges Bank's Output Gap Estimates
Output gap determinants in Ethiopia
Inflation, inflation uncertainty and output in Tunisia
Inflation, inflation uncertainty and output in Tunisia
Globalization,the Output-Inflation Tradeoff, and Inflation
Estimating Germany's potential output
Inflation Expectation Uncertainty, Inflation and the Output Gap
Inflation expectation uncertainty, inflation and the output gap
Forecasting Inflation with an Uncertain Output Gap
Forecasting inflation with an uncertain output gap
Estimation of Potential GDP and output Gap. Comparative Perspective
The Impact of Financial Factors on the Output Gap and Estimates of Potential Output Growth
Norges Bank's Output Gap Estimates
Output gap determinants in Ethiopia
Inflation, inflation uncertainty and output in Tunisia
Inflation, inflation uncertainty and output in Tunisia
Globalization,the Output-Inflation Tradeoff, and Inflation
Estimating Germany's potential output
Inflation Expectation Uncertainty, Inflation and the Output Gap
Inflation expectation uncertainty, inflation and the output gap
Forecasting Inflation with an Uncertain Output Gap
Forecasting inflation with an uncertain output gap
Estimation of Potential GDP and output Gap. Comparative Perspective
The Impact of Financial Factors on the Output Gap and Estimates of Potential Output Growth
Norges Bank's Output Gap Estimates
Output gap determinants in Ethiopia
Inflation, inflation uncertainty and output in Tunisia
Inflation, inflation uncertainty and output in Tunisia
Globalization,the Output-Inflation Tradeoff, and Inflation