Creation and Evolution of Inflation Expectations in Paraguay
The establishment of the inflation targeting regime in Paraguay is relatively recent, however, the results have been satisfactory. This is because based on the observed data, from the implementation of this framework, it has been possible to not only reduce inflation levels, but also align inflation expectations along the medium-term inflation target. Previously the implementation, both of these variables were characterized by significant volatility. Therefore, it can be affirmed that the inflation targeting regime has provided relevant information to economic agents on the monetary policy objectives, which has helped guide their inflation expectations. This paper seeks to identify the main determinants of the formation of inflation expectations in Paraguay since the adoption of the inflation targeting regime. This work bases the analysis on the results obtained from the expectations surveys conducted by the country's monetary authority. Likewise, it is important to note that the dispersion of the respondents' answers was adjusted within the inflation range and that it has also decreased according to the reduction in this range. This further evidences the effectiveness of the expectations channel, thanks to the credibility that the central bank has been achieving.
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Format: | Working Papers biblioteca |
Language: | English |
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Inter-American Development Bank
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Subjects: | Inflation, Inflation Targeting, Monetary Policy, E31 - Price Level • Inflation • Deflation, E52 - Monetary Policy, E58 - Central Banks and Their Policies, Monetary policy;Inflation expectations;Inflation targeting, |
Online Access: | http://dx.doi.org/10.18235/0001241 https://publications.iadb.org/en/creation-and-evolution-inflation-expectations-paraguay |
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dig-bid-node-130182020-06-04T22:28:38ZCreation and Evolution of Inflation Expectations in Paraguay 2018-07-31T00:00:00+0000 http://dx.doi.org/10.18235/0001241 https://publications.iadb.org/en/creation-and-evolution-inflation-expectations-paraguay Inter-American Development Bank Inflation Inflation Targeting Monetary Policy E31 - Price Level • Inflation • Deflation E52 - Monetary Policy E58 - Central Banks and Their Policies Monetary policy;Inflation expectations;Inflation targeting The establishment of the inflation targeting regime in Paraguay is relatively recent, however, the results have been satisfactory. This is because based on the observed data, from the implementation of this framework, it has been possible to not only reduce inflation levels, but also align inflation expectations along the medium-term inflation target. Previously the implementation, both of these variables were characterized by significant volatility. Therefore, it can be affirmed that the inflation targeting regime has provided relevant information to economic agents on the monetary policy objectives, which has helped guide their inflation expectations. This paper seeks to identify the main determinants of the formation of inflation expectations in Paraguay since the adoption of the inflation targeting regime. This work bases the analysis on the results obtained from the expectations surveys conducted by the country's monetary authority. Likewise, it is important to note that the dispersion of the respondents' answers was adjusted within the inflation range and that it has also decreased according to the reduction in this range. This further evidences the effectiveness of the expectations channel, thanks to the credibility that the central bank has been achieving. Inter-American Development Bank Pablo Alonso Working Papers application/pdf IDB Publications Paraguay en |
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Inflation Inflation Targeting Monetary Policy E31 - Price Level • Inflation • Deflation E52 - Monetary Policy E58 - Central Banks and Their Policies Monetary policy;Inflation expectations;Inflation targeting Inflation Inflation Targeting Monetary Policy E31 - Price Level • Inflation • Deflation E52 - Monetary Policy E58 - Central Banks and Their Policies Monetary policy;Inflation expectations;Inflation targeting |
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Inflation Inflation Targeting Monetary Policy E31 - Price Level • Inflation • Deflation E52 - Monetary Policy E58 - Central Banks and Their Policies Monetary policy;Inflation expectations;Inflation targeting Inflation Inflation Targeting Monetary Policy E31 - Price Level • Inflation • Deflation E52 - Monetary Policy E58 - Central Banks and Their Policies Monetary policy;Inflation expectations;Inflation targeting Inter-American Development Bank Creation and Evolution of Inflation Expectations in Paraguay |
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The establishment of the inflation targeting regime in Paraguay is relatively recent, however, the results have been satisfactory. This is because based on the observed data, from the implementation of this framework, it has been possible to not only reduce inflation levels, but also align inflation expectations along the medium-term inflation target. Previously the implementation, both of these variables were characterized by significant volatility. Therefore, it can be affirmed that the inflation targeting regime has provided relevant information to economic agents on the monetary policy objectives, which has helped guide their inflation expectations. This paper seeks to identify the main determinants of the formation of inflation expectations in Paraguay since the adoption of the inflation targeting regime. This work bases the analysis on the results obtained from the expectations surveys conducted by the country's monetary authority. Likewise, it is important to note that the dispersion of the respondents' answers was adjusted within the inflation range and that it has also decreased according to the reduction in this range. This further evidences the effectiveness of the expectations channel, thanks to the credibility that the central bank has been achieving. |
author2 |
Pablo Alonso |
author_facet |
Pablo Alonso Inter-American Development Bank |
format |
Working Papers |
topic_facet |
Inflation Inflation Targeting Monetary Policy E31 - Price Level • Inflation • Deflation E52 - Monetary Policy E58 - Central Banks and Their Policies Monetary policy;Inflation expectations;Inflation targeting |
author |
Inter-American Development Bank |
author_sort |
Inter-American Development Bank |
title |
Creation and Evolution of Inflation Expectations in Paraguay |
title_short |
Creation and Evolution of Inflation Expectations in Paraguay |
title_full |
Creation and Evolution of Inflation Expectations in Paraguay |
title_fullStr |
Creation and Evolution of Inflation Expectations in Paraguay |
title_full_unstemmed |
Creation and Evolution of Inflation Expectations in Paraguay |
title_sort |
creation and evolution of inflation expectations in paraguay |
publisher |
Inter-American Development Bank |
url |
http://dx.doi.org/10.18235/0001241 https://publications.iadb.org/en/creation-and-evolution-inflation-expectations-paraguay |
work_keys_str_mv |
AT interamericandevelopmentbank creationandevolutionofinflationexpectationsinparaguay |
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1809107471267004416 |