01622cas a2200229 a 4500 AALejournalIMF008217 230101c9999 xx r poo 0 0eng d 9781451952926 0145-1707 BD-DhAAL BD-DhAAL International Monetary Fund. External Relations Dept. Finance and Development, June 2003. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (58 pages) Finance and Development <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 This paper describes the importance of luck, timing, and political institutions in beating inflation. The paper highlights that countries experiencing high inflation typically make several disinflation attempts, some of which succeed only temporarily. If a country trying to stabilize prices and wages is unlucky enough to be exposed to severe external shocks-for example, a decline in demand for its exports-during its disinflation, the likelihood of failure is increased. A shock such as an increase in U.S. interest rates makes failure more likely for a country with an open capital account. Mode of access: Internet Finance and Development; Finance and Development ; No. 0040/002 Full text available on IMF http://elibrary.imf.org/view/journals/022/0040/002/022.0040.issue-002-en.xml IMF e-Library