A model of inflation and expectations in Latin America |
| |
Authors: | Jeffrey B. Nugent Constantine Glezakos |
| |
Affiliation: | University of Southern California, Los Angeles, CA 90007, USA;California State University, Long Beach, CA 90840, USA |
| |
Abstract: | This paper attempts to overcome certain shortcomings in the existing tests of various theories of inflation and cyclical income growth. It does so by appending a simple model of expectations formation to a simple macroeconomic simultaneous equation model of aggregate supply and demand. Some of the theoretical building blocs are reformulated so as to be more realistic for developing countries. Simultaneous equation estimation techniques are applied to a pooled sample of time series data for 16 Latin American countries. The authors provide empirical evidence supporting the revised hypotheses and offering new insights into the relationships among the actual and expected rates of inflation, the rate of income growth, and the growth rate of the money supply. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|