Resumen de A switching-regime model for the Spanish inflation, 1962-1997
Juan Ayuso Huertas, Graciela L. Kaminsky, J. David López Salido
During the 1970s and early 1980s, Spain suffered high rates of inflation but inflation declined and by 1997 inflation had fallen to approximately 2 percent. To fight inflation, Spain implemented austere monetary programs, joined the EMS in 1989, enacted central bank autonomy in 1994, and introduced inflation targets in January 1995. Certainly, these and other policies are in part responsible for the decline in inflation. However, it is unclear the extent of the contribution of each policy. This paper takes the first steps in capturing the magnitude of the effects of the different policies on inflation. It estimates a switching-regime model of inflation that allows for the endogenous identification of the dates of the switching from one regime to another. This possibility of dating the start of the different inflation regimes will allow us to link the evolution of inflation regimes to the timing of implementation of the anti-inflationary strategies.
