Abstract

GALVIS CIRO, Juan Camilo. Time-Inconsistency and Inflation: Empirical Evidence for Colombian Economy. Ens. Econ. [online]. 2018, vol.28, n.52, pp.63-76. ISSN 0121-117X.  https://doi.org/10.15446/ede.v28n52.71748.

This paper takes Colombia as a case-study and seeks to verify the constraints that the Time-inconsistency problem imposes on the time series corresponding to inflation and unemployment. The Colombian economy is analyzed in the period 1976-2006 and the results of the statistical tests show that the constraints were confirmed during the period 1976-1991. In particular, it is possible that errors in monetary policy management were partly responsible for the inflation growth in that period.

JEL: E61, E31, E24.

Keywords : time-inconsistency problem; inflation; unemployment.

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