Lack of Credibility, Inflation Persistence and Disinflation in Colombia

Borradores de Economia
Número: 
658
Publicado: 
Clasificación JEL: 
C52
Palabras clave: 
Credibility, Inflation, persistence, disinflation costs

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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