Boschen, J., O. Mills (1995): Test of Long-Run Neutrality Using Permanent Monetary and Real Shocks. Journal of Monetary Economics, 35, 25-44.
Bullard, J., W. Keating (1995): The Long-Run Relationship Between Inflation and Output in Postwar Economies. Journal of Monetary Economics, 36, 477-496.
Calvo, G., C Reinhardt, C. Végh (1995): Targeting the Real Exchange Rate: Theory and Evidence. Journal of Development Economics, 47, 97-133.
Calvo, G., C. Végh (1993): Exchange Rate Based Stabilization under Imperfect Credibility. In: Open Economy Macroeconomics, Frisch H. and A. Worgotter (eds.). London: McMillan.
Geweke, J. (1986): The Superneutrality of Money in the United States: An Interpretation of the Evidence. Econometrica, 54, 1-21.
Hasan, A., S. Mahmud, (1993): Is Money an Omitted Variable in the Production Function? Some Further Results. Empirical Economics, 18, 431-445.
Kiguel, M., N. Liviatan, (1992): The Business Cycle Associated with Exchange-Rate Based Stabilization. World Bank Economic Review, 6, 279-305.
Kormendi, R., P. Meguire, (1984): Cross-Regime Evidence of Macroeconomic Rationality. Journal of Political Economy, 92, 875-908.
Orphanides, A., R. Solow (1990): Money, Inflation and Growth. In: Handbook of Monetary Economics, Vol. 1, Friedman, M. Hahn, F. (eds.). New York: Elsevier.
Phillips, A. (1958): The Relation between Unemployment and the Rate of Change of Money Wages in the United Kingdom. Economica, 100, 283-299.
Rebelo, S., C. Végh (1996): Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories. NBER Macroeconomics Annual, 125-174.
Sidrauski,.M. (1967): Rational Choice in Patterns of Growth in a Monetary Economy. American Economic Review: Papers and Proceedings, 57, 534-544.
Stockman, A. (1981): Anticipated Inflation and the Capital Stock in a Cash-in-Advance Economy. Journal of Monetary Economics, 8,387-393.
Uribe, M. (1997): Exchange-Rate-Based Inflation Stabilization: The Initial Real Effects of Credible Plans. Journal of ‘Monetary Economics, 39(2), 197-221.
I would like to thank Carlos Végh, Tomás Reichmann, Mónica Perez, Bob Traa, Evan Tanner, Eva Jenkner, Gerardo Peraza, Max Alier and Juan-Carlos Jaramillo.
July 1977 - 154 percent, December 1978 - 108 percent, October 1981 - 126 percent, March 1983 - 174 percent.
This is the “temporariness effect” of Calvo and Végh (1993). For a similar pattern in Suriname see Braumann and Shah (2000).
The first subsample contains 31 observations. This procedure is directly comparable to Ghosh and Phillips (1998), who plot the relation between inflation and growth.