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Monetary Policy and Inflation Expectations in Latin America : Long-run Effects and Volatility Spillovers

2006

-integration analysis to estimate simultaneously a monetary reaction function and the determinants of expected inflation for Brazil, Chile …, Colombia and Mexico in the post-1999 period. It also tests for the presence of volatility spillovers between the monetary … examination, and ii) greater volatility in the monetary stance leads to higher volatility in expected inflation in Brazil …

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