In this paper we propose a model for the dynamics of inflation in Italy. It is shown that both in the short and long run the inflation patterns cannot be explained by a single cause. Changes in monetary and credit markets, and in many sectors of the Italian economy suggest to split the sample period into two sub-samples and modelling inflation differently for each of the periods. Moreover, a robustness analysis rejects the hypothesis of a structural break associated with the institutional changes occurred in 1999, with the adhesion to the EMU and the adoption of the euro.
E. Bacchiocchi (2009). Modelling Italian inflation : 1970-2006. RIVISTA DI POLITICA ECONOMICA, 99(1/3), 65-110.
Modelling Italian inflation : 1970-2006
E. Bacchiocchi
2009
Abstract
In this paper we propose a model for the dynamics of inflation in Italy. It is shown that both in the short and long run the inflation patterns cannot be explained by a single cause. Changes in monetary and credit markets, and in many sectors of the Italian economy suggest to split the sample period into two sub-samples and modelling inflation differently for each of the periods. Moreover, a robustness analysis rejects the hypothesis of a structural break associated with the institutional changes occurred in 1999, with the adhesion to the EMU and the adoption of the euro.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
