Le coût asymétrique en termes de production de la réduction de l'inflation: Résultants pour le Canada

Translated title of the contribution: Asymmetric output cost of lowering inflation: Empirical evidence for Canada

Hyeon Seung Huh, Hyun Hoon Lee

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

A strand of theoretical and empirical evidence in the literature suggests non-linearity in the output-inflation relationship, viz. a non-linear Phillips curve. We develop a VAR model of output, inflation, and terms of trade augmented with logistic smooth transition autoregression specifications. Empirically, the model captures non-linear features present in the data. Output costs of reducing inflation vary, depending on the economy, size of inflation change, and whether policy makers seek to disinflate or prevent inflation from rising. Thus, inferences based on the conventional linear Phillips curve may provide misleading signals about the cost of lowering inflation and the appropriate policy stance.

Original languageFrench
Pages (from-to)218-238
Number of pages21
JournalCanadian Journal of Economics
Volume35
Issue number2
DOIs
Publication statusPublished - 2002 May 1

Fingerprint

Costs
Inflation
Empirical evidence
Canada
Phillips curve
VAR model
Smooth transition autoregression
Logistics
Inference
Terms of trade
Nonlinearity
Politicians

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

@article{e2fcfb855ceb4d1f99287122ff46367f,
title = "Le co{\^u}t asym{\'e}trique en termes de production de la r{\'e}duction de l'inflation: R{\'e}sultants pour le Canada",
abstract = "A strand of theoretical and empirical evidence in the literature suggests non-linearity in the output-inflation relationship, viz. a non-linear Phillips curve. We develop a VAR model of output, inflation, and terms of trade augmented with logistic smooth transition autoregression specifications. Empirically, the model captures non-linear features present in the data. Output costs of reducing inflation vary, depending on the economy, size of inflation change, and whether policy makers seek to disinflate or prevent inflation from rising. Thus, inferences based on the conventional linear Phillips curve may provide misleading signals about the cost of lowering inflation and the appropriate policy stance.",
author = "Huh, {Hyeon Seung} and Lee, {Hyun Hoon}",
year = "2002",
month = "5",
day = "1",
doi = "10.1111/1540-5982.00128",
language = "French",
volume = "35",
pages = "218--238",
journal = "Canadian Journal of Economics",
issn = "0008-4085",
publisher = "Wiley-Blackwell",
number = "2",

}

Le coût asymétrique en termes de production de la réduction de l'inflation : Résultants pour le Canada. / Huh, Hyeon Seung; Lee, Hyun Hoon.

In: Canadian Journal of Economics, Vol. 35, No. 2, 01.05.2002, p. 218-238.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Le coût asymétrique en termes de production de la réduction de l'inflation

T2 - Résultants pour le Canada

AU - Huh, Hyeon Seung

AU - Lee, Hyun Hoon

PY - 2002/5/1

Y1 - 2002/5/1

N2 - A strand of theoretical and empirical evidence in the literature suggests non-linearity in the output-inflation relationship, viz. a non-linear Phillips curve. We develop a VAR model of output, inflation, and terms of trade augmented with logistic smooth transition autoregression specifications. Empirically, the model captures non-linear features present in the data. Output costs of reducing inflation vary, depending on the economy, size of inflation change, and whether policy makers seek to disinflate or prevent inflation from rising. Thus, inferences based on the conventional linear Phillips curve may provide misleading signals about the cost of lowering inflation and the appropriate policy stance.

AB - A strand of theoretical and empirical evidence in the literature suggests non-linearity in the output-inflation relationship, viz. a non-linear Phillips curve. We develop a VAR model of output, inflation, and terms of trade augmented with logistic smooth transition autoregression specifications. Empirically, the model captures non-linear features present in the data. Output costs of reducing inflation vary, depending on the economy, size of inflation change, and whether policy makers seek to disinflate or prevent inflation from rising. Thus, inferences based on the conventional linear Phillips curve may provide misleading signals about the cost of lowering inflation and the appropriate policy stance.

UR - http://www.scopus.com/inward/record.url?scp=2142815277&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=2142815277&partnerID=8YFLogxK

U2 - 10.1111/1540-5982.00128

DO - 10.1111/1540-5982.00128

M3 - Article

AN - SCOPUS:2142815277

VL - 35

SP - 218

EP - 238

JO - Canadian Journal of Economics

JF - Canadian Journal of Economics

SN - 0008-4085

IS - 2

ER -