Credibility Effects of Price Controls in Disinflation Programs:
This paper examines whether price controls may enhance the credibility of a disinflation program, using a framework in which agents behave strategically. The analysis indicates that a partial price freeze is not fully credible, and may result in inflation inertia. The authorities may be able to dete...
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1. Verfasser: | |
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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. 92/83 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper examines whether price controls may enhance the credibility of a disinflation program, using a framework in which agents behave strategically. The analysis indicates that a partial price freeze is not fully credible, and may result in inflation inertia. The authorities may be able to determine optimally the intensity of price controls so as to minimize the policy loss associated with a discretionary monetary strategy. But the optimal intensity of controls is shown to be significantly different from zero only if the cost of enforcing price ceilings is not too high, or if the weight attached to price distortions in the policymaker's loss function is small |
Beschreibung: | 1 Online-Ressource (23 p) |
ISBN: | 1451850484 9781451850482 |
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spelling | Agénor, Pierre-Richard Verfasser aut Credibility Effects of Price Controls in Disinflation Programs Agénor, Pierre-Richard Washington, D.C International Monetary Fund 1992 1 Online-Ressource (23 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 92/83 This paper examines whether price controls may enhance the credibility of a disinflation program, using a framework in which agents behave strategically. The analysis indicates that a partial price freeze is not fully credible, and may result in inflation inertia. The authorities may be able to determine optimally the intensity of price controls so as to minimize the policy loss associated with a discretionary monetary strategy. But the optimal intensity of controls is shown to be significantly different from zero only if the cost of enforcing price ceilings is not too high, or if the weight attached to price distortions in the policymaker's loss function is small Online-Ausg http://elibrary.imf.org/view/IMF001/01430-9781451850482/01430-9781451850482/01430-9781451850482.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Agénor, Pierre-Richard Credibility Effects of Price Controls in Disinflation Programs |
title | Credibility Effects of Price Controls in Disinflation Programs |
title_auth | Credibility Effects of Price Controls in Disinflation Programs |
title_exact_search | Credibility Effects of Price Controls in Disinflation Programs |
title_exact_search_txtP | Credibility Effects of Price Controls in Disinflation Programs |
title_full | Credibility Effects of Price Controls in Disinflation Programs Agénor, Pierre-Richard |
title_fullStr | Credibility Effects of Price Controls in Disinflation Programs Agénor, Pierre-Richard |
title_full_unstemmed | Credibility Effects of Price Controls in Disinflation Programs Agénor, Pierre-Richard |
title_short | Credibility Effects of Price Controls in Disinflation Programs |
title_sort | credibility effects of price controls in disinflation programs |
url | http://elibrary.imf.org/view/IMF001/01430-9781451850482/01430-9781451850482/01430-9781451850482.xml |
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