Since 2014
High Inflation, Price Stability and Hysteresis Effect: Evidence from Argentina
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
High Inflation, Price Stability and Hysteresis Effect: Evidence from Argentina
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| Creator |
Dabús, Carlos
Delbianco, Fernando Fioriti, Andrés |
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| Subject |
Hysteresis Effect, Money Demand, Currency Substitution
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| Description |
We estimate a Currency Substitution model for 1980-2013 periods in Argentina. Following the Mongardini and Mueller (2000) specification, our paper studies the persistence of lower demand of local money, or dollarization, by including a hysteresis variable. By applying an ARDL (Auto Regressive Distributed Lags) model, we found a clear ratchet effect, which implies that in the short run agents do not adjust to changes on the fundamentals, leading to a significant hysteresis variable.
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| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
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| Contributor |
—
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| Date |
2016-04-25
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://www.rae-ear.org/index.php/rae/article/view/452
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| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 31, No 1 (2016); 59-74
Revista de Análisis Económico – Economic Analysis Review; Vol 31, No 1 (2016); 59-74 0718-8870 0716-5927 |
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| Language |
eng
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| Relation |
http://www.rae-ear.org/index.php/rae/article/view/452/580
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| Rights |
Copyright (c) 2016 Revista de Análisis Económico – Economic Analysis Review
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