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In this paper we investigate the macroeconomic factors that give rise to economic fluctuations in Puerto Rico. Using a combination of impulse response functions and variance decompositions, it is shown that the trajectory of unemployment is affected, in both the short run and the long run, by local supply and by the demand generated by the Federal Reserve through its intermediate instrument of monetary policy. In contrast, inflation is mainly affected in both the short run and long run by changes in local and external demand.

Fuentes de las fluctuaciones macroeconómicas en Puerto Rico