Cuadernos de economía
versión On-line ISSN 0717-6821
CARABALLO, María Angeles y DABUS, Carlos. The Determinants of Relative Price Variability: further evidence from argentina. Cuad. econ. [online]. 2008, vol.45, n.132, pp. 235-255. ISSN 0717-6821. doi: 10.4067/S0717-68212008000200004.
This paper analyses the relative price variability (here after, RPVI) for Argentina from 1960 to 1993. We have distinguished a first period (1960-1975) with a moderate and stable inflation and a second one (1975-1993) withfour inflation regimes: moderate, high, very high and hyperinflation. Results show thatfor the high, very high, and hyperinflation regimes, volatility and all components of inflation are relevant in explaining RPVI; butfor the moderate regime, volatility and uncertainty are insignificant, and the impact ofexpected and unexpected inflation shocks depends on whether inflation is stable or not.
Palabras clave : Relative Price Variability; Inflation Regimes; Markov Switching Model; Inflation Components.