have decreased substantially from 2001 onwards, which coincides with the adoption of an inflation targeting regime by Banco …

aggregate supply on the behavior of the Peruvian inflation during the period 1997:1-2009:2. We use the methodology based on … obtain the historical decomposition of the annual inflation. Unlike Salas (2009), this paper uses a simpler model of … aggregate demand and aggregate supply, and a larger sample. The results show that the behavior of inflation was largely …

allows determining if inflation dynamics are likely explained by microeconomic foundations. Additionally, this approach … enables the analysis of price rigidities in the economy. The results suggest that: (1) unit labor costs explain inflation …