| Journal: | Journal of applied economics |
| Database: | CLASE |
| System number: | 000430307 |
| ISSN: | 1667-6726 |
| Authors: | Winkelried, Diego1 Gutierrez, José Enrique2 |
| Institutions: | 1Universidad del Pacífico, Lima. Perú 2Superintendencia de Banca, Seguros y AFP, Departamento de Investigación Económica, Lima. Perú |
| Year: | 2015 |
| Season: | Nov |
| Volumen: | 18 |
| Number: | 2 |
| Pages: | 199-224 |
| Country: | Argentina |
| Language: | Inglés |
| Document type: | Artículo |
| Approach: | Aplicado |
| English abstract | The Central Reserve Bank of Peru (BCRP) has been targeting inflation for more than a decade, using Lima’s inflation as the operational measure. An alternative indicator is countrywide inflation, whose quality and real-time availability have improved substantially. Given these competing measures, two policy questions arise: What have been the implications for national inflation of targeting Lima’s inflation? Would shifting to a national aggregate significantly affect the workings of monetary policy in Peru? To answer these questions, we estimate a large, but parsimonious, error correction model and investigate how regional shocks propagate across the country. The results indicate that a shock to Lima’s inflation is transmitted fast and strongly elsewhere in the country, whereas the effects of shocks in other regions are limited and short-lived. This constitutes supporting evidence to the view that by targeting Lima’s inflation, the BCRP has effectively, albeit indirectly, targeted national inflation |
| Disciplines: | Economía |
| Keyword: | Economía monetaria, Política económica, Planificación económica, Econometría, Banco Central, Política monetaria, Inflación, Modelo de corrección de errores, Lima, Perú |
| Full text: | Texto completo (Ver PDF) |
