Inflation and Monetary Reform /

The introduction of a new currency has often occurred as part of a program to fight hyperinflation. In this context, non-uniform conversion rates for different types of assets and liabilities have been used as a means of reducing an initial 'excess' stock of liquidity. The paper examines t...

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Bibliografski detalji
Glavni autor: Agenor, Pierre-Richard
Daljnji autori: Lennblad, Anna
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1992.
Serija:IMF Working Papers; Working Paper ; No. 1992/060
Teme:
Online pristup:Full text available on IMF
Opis
Sažetak:The introduction of a new currency has often occurred as part of a program to fight hyperinflation. In this context, non-uniform conversion rates for different types of assets and liabilities have been used as a means of reducing an initial 'excess' stock of liquidity. The paper examines the anticipatory dynamics associated with such reforms. The analysis suggests that monetary reforms of this type have a deflationary effect upon announcement as well as during the transition period. Under uncertainty about the reform date, the direction of the initial jump in prices upon announcement is a priori ambiguous. Upon implementation, a monetary reform leads to a downward jump in prices.
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Opis:1 online resource (34 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students