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.

Translated title of the contributionAsymmetric output cost of lowering inflation: Empirical evidence for Canada
Original languageFrench
Pages (from-to)218-238
Number of pages21
JournalCanadian Journal of Economics
Volume35
Issue number2
DOIs
Publication statusPublished - 2002 May

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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