%0 Journal Article
%T Inflation Volatility and Growth in a Stochastic Small Open Economy: A Mixed Jump-Diffusion Approach
%A T¨¦llez-Le¨®n
%A Isela Elizabeth
%A Venegas-Mart¨ªnez
%A Francisco
%A Rodr¨ªguez-Nava
%A Abigail
%J Econom¨ªa: teor¨ªa y pr¨¢ctica
%D 2011
%I UAM, Unidad Iztapalapa, Departamento de Econom¨ªa
%X 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 price level is driven by mixed diffusion-jump process, that is, a brownian motion governs inflation and a poisson process guides unexpected and sudden jumps in the price index. the economic growth rate is endogenously determined, in the equilibrium, as a function of parameters of the inflation process.
%K inflation
%K growth
%K stochastic models.
%U http://www.scielo.org.mx/scielo.php?script=sci_abstract&pid=S0188-33802011000200006&lng=en&nrm=iso&tlng=en