Inflation Volatility and Growth in a Stochastic Small Open Economy: A Mixed Jump-Diffusion Approach
The aim of this paper is to examine how inflation volatility affects economic growth in a small open economy. To reach this goal, a stochastic macroeconomic model with a financial sector and incomplete financial markets (due to the inclusion of jumps) is developed. It is assumed that the general pri...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidad Autónoma Metropolitana
2011-12-01
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| Series: | Economía Teoría y Práctica |
| Subjects: | |
| Online Access: | http://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S0188-33802011000200006 |