Latin American Inflation

Theoretical Interpretations and Empirical Results

In his book, Cole points out that a simple monetarist model can explain Latin Amercian inflation, although it cannot by itself provide an explanation in terms of the ultimate causes of inflation.

In his book, Cole points out that a simple monetarist model can explain Latin Amercian inflation, although it cannot by itself provide an explanation in terms of the ultimate causes of inflation. This is the basis of the structuralist critique, which attempts to provide an explanation in a deeper, overall sense. The author concludes that while the monetarist model deals with empirical testing and data, the structuralist approach highlights the human element and country-specific circumstances that cannot really be measured. In addition, an analysis of the recent Bolivian hyperinflation is given.

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