The paper presents an incomplete competition model (ICM), where inflation is determined jointly with unit labour cost … growth. The ICM is estimated on data for the Euro area and evaluated against existing models, i.e. the implicit inflation …. There is, however, some support in favour of the (reduced form) AWM inflation equation. It is the only model that …

This research aims at assessing the impact of the volatility of the exchange rate on inflation expectations and … economic growth prospects in Mexico. In order to see whether there is some degree of causality, we will be using standard … significant relationship between the exchange rate volatility and the volatility of inflation expectations, while no statistically …

inflation’s total variation in Mexico. In this context, we study the performance of seasonal time series models to forecast …Since the adoption of inflation targeting, the seasonal appears to be the component that explains the major part of … short-run inflation. Using multi-horizon evaluation techniques, we examine the real-time forecasting performance of four …

expectations, and inflation in Mexico. The model is able to distinguish between causes and remedies of hyperinflation, such as … that fiscal policy can affect inflation expectations in a context of Central Bank independence, as is the case in Mexico …We exploit a hidden Markov model where inflation is determined by government deficits financed through money creation …

This paper estimates a hidden Markov model where inflation is determined by government deficits financed through money … inflation expectations. The estimated sequence of monetized deficits provides an adequate account of inflation for the period … 196994. The paper then extends the model to analyze the possibility that fiscal policy can affect inflation expectations in a …

We explore the dynamics of inflation, inflation expectations, and seigniorage-financed fiscal deficits in Mexico. To do … our results match to key economic events. Mexico has successfully stabilized inflation expectations for the past decades … so, we estimate the model in Sargent, Williams, and Zha (2009) using Mexican CPI inflation data. This model features dual …