On Credible Disinflation

Author : Mr.Jorge Roldos
Publisher : International Monetary Fund
ISBN 13 : 1451851340
Total Pages : 26 pages
Book Rating : 4.42/5 ( download)

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Download or read book On Credible Disinflation written by Mr.Jorge Roldos and published by International Monetary Fund. This book was released on 1993-11-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the effects of a credible, gradual exchange rate based disinflation program in a two sector economy. After an initial real exchange rate depreciation, the reductions in the rate of devaluation reduce the monetary wedge generated by a cash in advance constraint, leading to a gradual increase in absorption that yields progressive real exchange rate appreciations and current account deficits. An initial boom in economic activity is not followed by a later contraction, as labor supply expands during the whole length of the program.

Author : Jorge Roldós
Publisher :
ISBN 13 :
Total Pages : 26 pages
Book Rating : 4.48/5 ( download)

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Download or read book On Credible Disinflation written by Jorge Roldós and published by . This book was released on 2006 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the effects of a credible, gradual exchange rate based disinflation program in a two sector economy. After an initial real exchange rate depreciation, the reductions in the rate of devaluation reduce the monetary wedge generated by a cash in advance constraint, leading to a gradual increase in absorption that yields progressive real exchange rate appreciations and current account deficits. An initial boom in economic activity is not followed by a later contraction, as labor supply expands during the whole length of the program.

Author :
Publisher :
ISBN 13 :
Total Pages : 20 pages
Book Rating : 4.73/5 ( download)

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Download or read book On Credible Disinflation written by and published by . This book was released on 1993 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Fondo Monetario Internacional
Publisher :
ISBN 13 :
Total Pages : 20 pages
Book Rating : 4.33/5 ( download)

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Download or read book On credible disinflation written by Fondo Monetario Internacional and published by . This book was released on 1993 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Rumen Kostadinov
Publisher : International Monetary Fund
ISBN 13 : 1513546120
Total Pages : 32 pages
Book Rating : 4.24/5 ( download)

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Download or read book Credibility Dynamics and Disinflation Plans written by Rumen Kostadinov and published by International Monetary Fund. This book was released on 2020-06-05 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the optimal design of a disinflation plan by a planner who lacks commitment. Having announced a plan, the Central banker faces a tradeoff between surprise inflation and building reputation, defined as the private sector's belief that the Central bank is committed to the plan. Some plans are harder to sustain: the planner recognizes that paving out future grounds with temptation leads the way for a negative drift of reputation in equilibrium. Plans that successfully create low inflationary expectations balance promises of lower inflation with dynamic incentives that make them more credible. When announcing the disinflation plan, the planner takes into account these anticipated interactions. We find that, even in the zero reputation limit, a gradual disinflation is preferred despite the absence of inflation inertia in the private economy.

Author : Guillermo A. Calvo
Publisher :
ISBN 13 :
Total Pages : 54 pages
Book Rating : 4.19/5 ( download)

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Download or read book Inflation Inertia and Credible Disinflation written by Guillermo A. Calvo and published by . This book was released on 2003 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a model of inflation inertia based on optimizing forward looking staggered price setting in a small open economy. Unlike in current models of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated with significant output losses. There is a welfare trade-off between these output losses and the gains from smaller inflationary distortions. For reasonable parameter values inflation stabilization improves welfare. The optimal steady state is reached at the Friedman rule. Technical appendices are available at www.nber.org/data-appendix/w9557/ inert-techapp.pdf.

Author : Carlos Balseyro Rodriguez
Publisher :
ISBN 13 :
Total Pages : 27 pages
Book Rating : 4.69/5 ( download)

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Download or read book Credible disinflation with staggered price setting written by Carlos Balseyro Rodriguez and published by . This book was released on 1990 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Pierre-Richard Agénor
Publisher :
ISBN 13 :
Total Pages : 28 pages
Book Rating : 4.58/5 ( download)

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Download or read book Credible Disinflation Programs written by Pierre-Richard Agénor and published by . This book was released on 1993 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author :
Publisher :
ISBN 13 :
Total Pages : 27 pages
Book Rating : 4.78/5 ( download)

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Download or read book Credible Disinflation with Staggered Price Setting written by and published by . This book was released on 1990 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Laurence M. Ball
Publisher :
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4.18/5 ( download)

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Download or read book Credible Disinflation with Staggered Price Setting written by Laurence M. Ball and published by . This book was released on 1990 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper determines the real effects of credible disinflation when price setting is staggered. The results are surprising: a fairly quick disinflation causes a boom. This finding suggests that nominal price rigidity alone does not explain why disinflation is costly in actual economies.