Abstract
One can analyze and forecast the inflationary potential in the Puerto Rican e c onomy using the “P* model.” Given the nature of the monetary sector in Puerto Rico (PR), the model is put into the conte xt of variables from the m ainland United States (US). The results indicat e a long-run relationship b etween the m o n ey supply (M1) of the US and the pri ce level in PR, between M1 and real productio n in PR, and b etween M1 and the prime rate in PR. The implications for forecasting and p olicy are discu ssed.
Keywords
Econometric Modeling , Time Serie's Analysis, Forecasting Methods, Monetary Economics
How to Cite
Rodriguez, C. A., (2004) “A P* MODEL ANALYSIS OF I NFLATION IN PUE RTO RICO”, American Review of Political Economy 2(2). doi: https://doi.org/10.38024/arpe.78
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