WP 2014-24: The relationship between inflation and growth discrete cycles: Peru 1993 - 2012Original titleLa relación entre los ciclos discretos en la inflación y el crecimiento: Perú 1993 - 2012
WP 2014-24: The relationship between inflation and growth discrete cycles: Peru 1993 - 2012Original titleLa relación entre los ciclos discretos en la inflación y el crecimiento: Perú 1993 - 2012
WP 2014-24: The relationship between inflation and growth discrete cycles: Peru 1993 - 2012Original titleLa relación entre los ciclos discretos en la inflación y el crecimiento: Perú 1993 - 2012
N°
WP 2014-24
Title
The relationship between inflation and growth discrete cycles: Peru 1993 - 2012
Original title
La relación entre los ciclos discretos en la inflación y el crecimiento: Perú 1993 - 2012
Author(s)
Carlos Barrera
Language
Spanish
Date
2014/12/31
Abstract
This study verifies the hypothesis of a non-linear relationship between inflation and short-run economic growth in Peru with data that covers the period January 1993 - June 2012. The paper uses a family of dichotomic models about the relationship between acceleration and deceleration phases on the dynamics of both inflation and growth. One-equation autoregressive logit models as well as static and autoregressive binary probit models are estimated. Results suggest the existence of a positive stochastic relationship between inflation and growth discrete cycles.