Losing Credibility: The Stabilization Blues
In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as the highly visible nominal anchor provides a sense of stability and hopes run high for a permanent solution to the fiscal problems. Later, as the domestic currency appreciates in re...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1992
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Schriftenreihe: | IMF Working Papers
Working Paper No. 92/73 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as the highly visible nominal anchor provides a sense of stability and hopes run high for a permanent solution to the fiscal problems. Later, as the domestic currency appreciates in real terms and the fiscal problems are not fully resolved, the credibility of the program falls, sometimes precipitously. This paper develops a political-economy model that focuses on the evolution of credibility over time, and is consistent with the pattern just described. Inflation inertia and costly budget negotiations play a key role in the model |
Beschreibung: | 1 Online-Ressource (44 p) |
ISBN: | 1451958595 9781451958591 |
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spelling | Guidotti, Pablo Emilio Verfasser aut Losing Credibility The Stabilization Blues Guidotti, Pablo Emilio Washington, D.C International Monetary Fund 1992 1 Online-Ressource (44 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 92/73 In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as the highly visible nominal anchor provides a sense of stability and hopes run high for a permanent solution to the fiscal problems. Later, as the domestic currency appreciates in real terms and the fiscal problems are not fully resolved, the credibility of the program falls, sometimes precipitously. This paper develops a political-economy model that focuses on the evolution of credibility over time, and is consistent with the pattern just described. Inflation inertia and costly budget negotiations play a key role in the model Online-Ausg Végh Gramont, Carlos A. Sonstige oth http://elibrary.imf.org/view/IMF001/04339-9781451958591/04339-9781451958591/04339-9781451958591.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Guidotti, Pablo Emilio Losing Credibility The Stabilization Blues |
title | Losing Credibility The Stabilization Blues |
title_auth | Losing Credibility The Stabilization Blues |
title_exact_search | Losing Credibility The Stabilization Blues |
title_exact_search_txtP | Losing Credibility The Stabilization Blues |
title_full | Losing Credibility The Stabilization Blues Guidotti, Pablo Emilio |
title_fullStr | Losing Credibility The Stabilization Blues Guidotti, Pablo Emilio |
title_full_unstemmed | Losing Credibility The Stabilization Blues Guidotti, Pablo Emilio |
title_short | Losing Credibility |
title_sort | losing credibility the stabilization blues |
title_sub | The Stabilization Blues |
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