Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006

We study the regime dependence of the money–prices relationship, focusing on Argentina's experience over the last 30 years. Using descriptive and cointegration analysis we find that proportionality holds for the high inflation period but weakens once inflation lowers. Money velocity correlates...

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Detalles Bibliográficos
Autores principales: Basco, Emiliano, D'Amato, Laura, Garegnani, María Lorena
Formato: Articulo
Lenguaje:Inglés
Publicado: 2009
Materias:
Ciencias Económicas
Money growth
Inflation
Money velocity
Regime dependence
Cointegration
VAR models
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/129244
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-129244
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
Money growth
Inflation
Money velocity
Regime dependence
Cointegration
VAR models
spellingShingle Ciencias Económicas
Money growth
Inflation
Money velocity
Regime dependence
Cointegration
VAR models
Basco, Emiliano
D'Amato, Laura
Garegnani, María Lorena
Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006
topic_facet Ciencias Económicas
Money growth
Inflation
Money velocity
Regime dependence
Cointegration
VAR models
description We study the regime dependence of the money–prices relationship, focusing on Argentina's experience over the last 30 years. Using descriptive and cointegration analysis we find that proportionality holds for the high inflation period but weakens once inflation lowers. Money velocity correlates positively with money growth under high inflation, while this relation reverts under low inflation. VAR analysis allows to identify the key role of inflation expectations in driving the short-run dynamics of the money growth–inflation relationship under high inflation. Although this relationship weakens under low inflation, money continues to play a role in explaining inflation dynamics in Argentina.
format Articulo
Articulo
author Basco, Emiliano
D'Amato, Laura
Garegnani, María Lorena
author_facet Basco, Emiliano
D'Amato, Laura
Garegnani, María Lorena
author_sort Basco, Emiliano
title Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006
title_short Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006
title_full Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006
title_fullStr Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006
title_full_unstemmed Understanding the money–prices relationship under low and high inflation regimes: Argentina 1977–2006
title_sort understanding the money–prices relationship under low and high inflation regimes: argentina 1977–2006
publishDate 2009
url http://sedici.unlp.edu.ar/handle/10915/129244
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