Crecimiento económico e inflación: el caso de México

Abstract

The analysis focuses on the short-run dynamics of several macroeconomic variables and their relationship with the rate of inflation. The cyclical components of the variables are obtained through the Hodrick- Prescott filter. Contemporaneous correlations between the cyclical components show that inflation rates above their long-term trend are associated with below trend economic activity, employment, investment and real wages and with nominal and real interest rates above their trend. Non-contemporaneous correlations show that inflation has an adverse effect on the referred variables. Results are confirmed through “impulse-response” functions.