The Determinants of Relative Price Variability: further evidence from argentina

this paper analyses the relative price variability (here after, rpvi) for argentina from 1960 to 1993. we have distinguished a first period (1960-1975) with a moderate and stable inflation and a second one (1975-1993) withfour inflation regimes: moderate, high, very high and hyperinflation. results show thatfor the high, very high, and hyperinflation regimes, volatility and all components of inflation are relevant in explaining rpvi; butfor the moderate regime, volatility and uncertainty are insignificant, and the impact ofexpected and unexpected inflation shocks depends on whether inflation is stable or not.