Lack of Credibility, Inflation Persistence and Disinflation in Colombia

Number: 
658
Published: 
Classification JEL: 
C52

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