Inflation dynamics, persistence, and prices and wages formation / Centro de Estudios Monetarios Latinoamericanos ; editors Laura D'Amato, Enrique López Enciso, María Teresa Ramírez ; prologue Javier E. Guzmán Calafell.

Prologue p. I -- Inflation Persistence p. 1 -- Introduction / Laura D'Amato p. 3 -- Regimes and Underlying Inflation Dynamics: Generalized Comovement or Relative Price Adjustment? / Tomás Castagnino and Laura D'Amato p. 9 -- 1. Introduction p. 9 -- 2. Inflation Regimes: A First Approximation Using the Bai-Perron Test p. 11 -- 3. Inflation Regimes and Comovement p. 14 -- 4. Comovement and Sectoral Patters Behind Inflation Dynamics p. 19 -- 5. Conclusions p. 29 -- Appendix p. 30 -- References p. 34 -- Inflationary Dynamics and Persistence in Costa Rica: Period 1953-2009 / Carlos Chaverri Morales and Carlos Torres Gutiérrez p. 37 -- 1. Introduction p. 37 -- 2. Conceptual Issues p. 39 -- 3. Methodology p. 42 -- 3.1 Autoregressive Model of Order p p. 43 -- 3.2 Half-life of an inflationary shock p. 44 -- 4. Brief History of Inflation in Costa Rica p. 45 -- 5. Empirical Evidence p. 48 5.1 Degree of Integration Monthly Inflation p. 49 -- 5.2 Recursive Analysis p. 49 -- 5.3 Evaluation of multiple breaks in the inflation rate (Bai-Perron test) p. 50 -- 5.4 Estimation of the Average Non-constant Inflation in the Whole Period p. 52 -- 5.5 Estimated Inflation Persistence in the Total Period p. 56 -- 5.6 Estimation of Persistence in the Recent Sub Period p. 57 -- 6. Concluding Remarks p. 61 -- Annexes p. 63 -- References p. 76 -- How Persistent is Inflation in Argentina?: Inflation Regimes and Price Dynamics in the Last 50 Years / Laura D'Amato and María Lorena Garegnani p. 81 -- 1. Introduction p. 81 -- 2. Inflation Persistence in the Literature p. 83 -- 2.1 Inflation Persistence: Conventional Measures p. 84 -- 3. Inflation Persistence and Monetary Regimes p. 85 -- 3.1 Inflation Dynamics in Argentina p. 85 -- 3.2 Descriptive Analysis p. 87 -- 3.3 Assessing the Presence of Breaks in Trend Inflation p. 89 -- 4. Inflation Persistence p. 91 -- 4.1 A Detailed Analysis of the Low Inflation Period p. 97 -- 5. Conclusions p. 101 -- References p. 102 -- The Target of the Central Bank and Inflation Persistence in Colombia / Juan José Echavarría, Norberto Rodríguez and Luis Eduardo Rojas p. 105 -- 1. Introduction p. 105 -- 2. The Model p. 108 -- 3. Persistence of Total Inflation p. 110 -- 4. Persistence of the Different Components of Total Inflation p. 115 -- 5. Conclusions p. 122 -- References p. 123 -- The Statistical Persistence of Inflation in Colombia / Juan José Echavarría S., Enrique López E. and Martha Misas A. p.127 -- 1. Introduction p. 127 -- 2. Structural Factors a Research Program for Colombia p. 128 -- 2.1 Structural Factors Explaining Persistence p. 129 -- 2.2 Including in the Phillips curve p. 134 -- 2.3 Modifications to Calvo's Model (with Rational Expectations p. 135 -- 2.4 Learning Processes p. 137 -- 2.5 Central Bank Credibility p. 138 -- 3. Statistical Persistence. Methodology and International Empirical Evidence p. 138 -- 3.1 Measurement Methodologies p. 139 -- 3.2 International Empirical Evidence p. 141 -- 4. Statistical Persistence in Colombia p. 147 -- 4.1 Series Order of Integration Test p. 148 -- 4.2 Regime Switching Model (Markov-switching) p. 151 -- 5. Policy Implications and Conclusions p. 161 --References p. 162 -- Is Inflation Persistence Over? / Fernando N. de Oliveira and Myrian Petrassi p. 169 -- 1. Introduction p. 169 -- 2. Data p. 173 -- 3. Empirical Analysis p. 174 -- 3.1 Traditional Models of Inflation p. 174 -- 3.2 New Keynesian Models Estimation p. 178 -- 3.3 New Keynesian Models Estimation with Wage Rigidities p. 181 -- 4. Conclusion p. 184 -- References p. 185 -- Price Formation p. 187 -- Introduction /Enrique López E. p. 189 -- Price Setting in Retailing: the Case of Uruguay / Fernando Borraz and Leandro Zipitría p. 193 -- 1. Introduction p. 193 -- 1.1 A Brief Review of the Empirical Literature p. 194 -- 2. Data p. 196 -- 3. Results p. 199 -- 3.1 Frequency of Price Adjustments p. 200 -- 3.2 Seasonality of Price Changes p. 201 -- 3.3 Individual Price Changes and Inflation Perceptions p. 203 -- 3.4 Prices Changes by Day of the Month p. 205 -- 3.5 Hazard Rate Estimates p. 207 -- 3.6 Price synchronization p. 209 -- 4. Contrasting the Results with Theory p. 210 -- 5. Conclusions p. 212 -- Annexes p. 213 -- References p. 219 -- Price Flexibility in an inflationary Economy: Case Venezuela / León Fernández Bujanda p. 221 -- 1. Introduction p. 221 -- 2. Data p. 223 -- 3. Duration p. 226 -- 3.1 Direct Method p. 226 -- 3.2 Indirect Method p. 228 -- 3.3 Results Robustness p. 231 -- 4. Heterogeneous Nature of Durations p. 233 -- 4.1 Descriptive Statistics p. 233 -- 4.2 Multinomial Logit Regression p. 236 -- 5. Hazard Rate p. 242 -- 6. Conclusions p. 245 -- References p. 247 -- Price Formation in Colombian Firms: Evidence Gathered from a Direct Survey / Martha Misas A., Enrique López E. and Juan Carlos Parra A. p. 251 -- 1. Introduction p. 251 -- 2. A Review of the Literature p. 254 -- 3. Methodology p. 257 -- 3.1 Sample Design p. 258 -- 3.2 Questionnaire Design and Implementation p. 260 -- 3.3 Economic Conditions p. 262 -- 4. Characterization of the Market Where Firms Operate p. 262 -- 5. Pricing Review p. 265 -- 5.1 Pricing Review Policies: Time Dependent vs. State Dependent p. 265 -- 5.2 Body of Information Employed in Pricing Review p. 268 -- 5.3 How Often Do Firms Review Pricing? p. 274 -- 6. Price Change p. 277 -- 6.1 How Do Firms Set Prices? p. 279 -- 6.2 Frequency of Price Changes p. 284 -- 6.3 Relation between Pricing Review and Change p. 289 -- 6.4 Theories on Price Rigidity p. 292 -- 7. Factors Associated with Price Changes p. 297 -- 7.1 Asymmetries p. 297 -- 7.2 Adjustment of Prices after Shocks p. 302 -- 8. Conclusions p. 304 -- Appendix p. 306 -- References p. 317 -- Consumer Price Behavior in Mexico Under Inflation Targeting: A Microdata Approach / Carla Ysusi p. 323 -- 1. Introduction p. 323 -- 2. Mexican Consumer Price Index p. 325 -- 2.1 The Microdata p. 326 -- 2.2 Unregulated and regulated products p. 328 -- 3. Some Definitions p. 329 -- 4. Main Results from Microdata p. 331 -- 4.1 Frequencies and Implied Duration p. 331 -- 4.2 Magnitudes p. 351 -- 4.3 Time or State Dependent p. 355 -- 4.4 Comparison with Previous Research p. 362 -- 5. Conclusions p. 363 -- Appendix p. 367 -- References p. 371 -- Wage Rigidities p. 375 -- Introduction / María Teresa Ramírez p. 377 -- Microeconomic Evidence of Nominal Wage Rigidities in Chile / Marcus Cobb C. and Luis Opazo R. p. 379 -- 1. Introduction p. 379 -- 2. International Evidence p. 381 -- 3. The Data p. 383 -- 3.1 General Information p. 383 -- 3.2 Panel Construction p. 384 -- 3.3 Wage Adjustments p. 388 -- 4. Wage Adjustments in Chile p. 392 -- 4.1 Description of Frequency of Adjustments in Chile p. 392 -- 4.2 Determinants of Wage Flexibility: Econometric Focus p. 394 -- 5. Main Findings p. 397 -- Appendix p. 398 -- References p. 399 -- Downward Wage Rigidities and Other Firms' Responses to an Economic Slowdown: Evidence from a Survey of Colombian Firms / Ana María Iregui B., Ligia Alba Melo B. and María Teresa Ramírez G. p. 403 -- 1. Introduction p. 403 -- 2. Survey Design p. 407 -- 3. Downward Nominal and Real Wage Rigidities p. 409 -- 4. Reasons Preventing Wage Cuts p. 416 -- 4.1 Complementarity among Theories on Wage Rigidities p. 423 -- 5. Firms' Other Responses to an Economic Slowdown p. 423 -- 6. Conclusions p. 444 -- References p. 445