01883cas a2200313 a 4500 AALejournalIMF007941 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451843699 1018-5941 BD-DhAAL BD-DhAAL De Gregorio, Jose. Theories of Policy Accommodation : The Persistence of Inflation and Gradual Stabilizations / Jose De Gregorio. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Persistent inflation and slow stabilization are usually the result of policy accommodation resorted to in an attempt to avoid the recessionary costs of a sharp reduction of inflation. This paper reviews three explanations for why policymakers, despite their dislike of inflation, may nevertheless choose to adopt accommodative policies. It emphasizes the role of indexation, uncertainty about policymakers' preferences, and the existence of fixed costs associated with the implementation of a stabilization program. The paper also presents some evidence on the extent of persistence of inflation across countries. Mode of access: Internet Fixed Cost imf Full Employment imf Monetary Policy imf Phillips Curve imf WP imf Belgium imf IMF Working Papers; Working Paper ; No. 1992/019 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/019/001.1992.issue-019-en.xml IMF e-Library