Lack of Credibility, Inflation Persistence and Disinflation in Colombia

Borradores de Economia
Number: 
658
DOI: 
http://doi.org/10.32468/be.658
Published: 
Classification JEL: 
C52
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This paper measures inflation persistence in Colombia for the period 1990-2010 and estimates the implied speed at which agents learn about the central bank's inflation target. We estimate Erceg and Levin's (2003) imperfect credibility model using Bayesian