Exchange-Rate-Based Stabilization under Imperfect Credibility /

This paper analyzes stabilization policy under predetermined exchange rates in a cash-in-advance, staggered-prices model. Under full credibility, a reduction in the rate of devaluation results in an immediate and permanent reduction in the inflation rate, with no effect on output or consumption. In...

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Autor principal: Calvo, Guillermo
Altres autors: Vegh Gramont, Carlos
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1991.
Col·lecció:IMF Working Papers; Working Paper ; No. 1991/077
Accés en línia:Full text available on IMF