Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models
This paper examines the impact of inflation and its variability for eight Caribbean countries; Antigua and Barbuda, Bahamas, Barbados, Dominica, Grenada, Jamaica, Saint Kitts and Nevis and Saint Vincent and the Grenadines. The paper goes beyond the standard approach to examine the variability of rel...
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ECLAC
2011-10
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| Acceso en línea: | http://hdl.handle.net/11362/4085 |
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Alleyne, Dillon Lugay, Beverly 2014-01-02T15:22:07Z 2014-01-02T15:22:07Z 2011-10 http://hdl.handle.net/11362/4085 LC/CAR/L.347 LC/W.444 Includes bibliography This paper examines the impact of inflation and its variability for eight Caribbean countries; Antigua and Barbuda, Bahamas, Barbados, Dominica, Grenada, Jamaica, Saint Kitts and Nevis and Saint Vincent and the Grenadines. The paper goes beyond the standard approach to examine the variability of relative prices (VRP) within the context of a threshold effects framework, since it was recognized that whether inflation was low or very high was significant in determining its impact on an economy. The paper employed a panel threshold effects model to capture the non-linear nature of the relationship, which exists between inflation and its variability. The findings are that inflation variability is high at both low and high rates of inflation and that inflation targeting could have an upper-bound of at most 10% for the Caribbean. It was also found that such variability could even exist in a low inflation environment, which added to inflation uncertainty. Of course this conclusion is subject to the fact that there is considerable variation in inflation rates among countries in the Caribbean subregion and therefore policies to address inflation would have to be country specific. 27 páginas. en ECLAC Documentos de Proyectos 444 Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models Texto Documento Completo Puerto España 27 p. : gráfs., tabls. S2011931 E LC/W.444 Port-of-Spain INFLACION PRECIOS DATOS ESTADISTICOS INFLATION PRICES STATISTICAL DATA CARIBE CARIBBEAN REGION Documentos de proyectos e investigación INFLACIÓN PRECIOS DESARROLLO SOSTENIBLE INFLATION PRICES SUSTAINABLE DEVELOPMENT 45465 DESARROLLO SOSTENIBLE Y ASENTAMIENTOS HUMANOS DESARROLLO ECONÓMICO ESTADÍSTICAS SUSTAINABLE DEVELOPMENT AND HUMAN SETTLEMENTS ECONOMIC DEVELOPMENT STATISTICS gráficos, tablas |
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Comisión Económica para América Latina y el Caribe(CEPAL) |
| collection |
Comisión Económica para América Latina y el Caribe(CEPAL) |
| title |
Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models |
| spellingShingle |
Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models Alleyne, Dillon Lugay, Beverly INFLACION PRECIOS DATOS ESTADISTICOS INFLATION PRICES STATISTICAL DATA |
| title_short |
Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models |
| title_full |
Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models |
| title_fullStr |
Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models |
| title_full_unstemmed |
Inflation and the variability of relative prices in the Caribbean: evidence from panel threshold models |
| title_sort |
inflation and the variability of relative prices in the caribbean: evidence from panel threshold models |
| author |
Alleyne, Dillon Lugay, Beverly |
| author_facet |
Alleyne, Dillon Lugay, Beverly |
| topic |
INFLACION PRECIOS DATOS ESTADISTICOS INFLATION PRICES STATISTICAL DATA |
| topic_facet |
INFLACION PRECIOS DATOS ESTADISTICOS INFLATION PRICES STATISTICAL DATA |
| publishDate |
2011-10 |
| language |
English |
| publisher |
ECLAC |
| physical |
27 páginas. |
| format |
Texto |
| description |
This paper examines the impact of inflation and its variability for eight Caribbean countries; Antigua and Barbuda, Bahamas, Barbados, Dominica, Grenada, Jamaica, Saint Kitts and Nevis and Saint Vincent and the Grenadines. The paper goes beyond the standard approach to examine the variability of relative prices (VRP) within the context of a threshold effects framework, since it was recognized that whether inflation was low or very high was significant in determining its impact on an economy. The paper employed a panel threshold effects model to capture the non-linear nature of the relationship, which exists between inflation and its variability. The findings are that inflation variability is high at both low and high rates of inflation and that inflation targeting could have an upper-bound of at most 10% for the Caribbean. It was also found that such variability could even exist in a low inflation environment, which added to inflation uncertainty. Of course this conclusion is subject to the fact that there is considerable variation in inflation rates among countries in the Caribbean subregion and therefore policies to address inflation would have to be country specific.
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| url |
http://hdl.handle.net/11362/4085 |
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AT alleynedillon inflationandthevariabilityofrelativepricesinthecaribbeanevidencefrompanelthresholdmodels AT lugaybeverly inflationandthevariabilityofrelativepricesinthecaribbeanevidencefrompanelthresholdmodels |
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