Inflation, Credibility, and the Role of the International Monetary Fund /

This paper argues that many developing countries may find it difficult to buttress disinflation programs purely through the adoption of traditional credibility-enhancing devices (such as monetary anchors and central bank independence), owing to 'technical problems' (for example, high insta...

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Bibliographic Details
Main Author: Giannini, Curzio
Other Authors: Cottarelli, Carlo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1998.
Series:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 1998/012
Online Access:Full text available on IMF
Description
Summary:This paper argues that many developing countries may find it difficult to buttress disinflation programs purely through the adoption of traditional credibility-enhancing devices (such as monetary anchors and central bank independence), owing to 'technical problems' (for example, high instability of money demand, increased capital mobility) and an insufficient endowment of credibility in the political institutions. In these cases, borrowing credibility from an outside agency like the International Monetary Fund may be the most effective solution. The paper discusses the different options that would allow the Fund to support programs aimed not at external adjustment-the Fund's traditional role-but at disinflation.
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Physical Description:1 online resource (26 pages)
Format:Mode of access: Internet
ISSN:1934-7456
Access:Electronic access restricted to authorized BRAC University faculty, staff and students