01802cas a2200241 a 4500 AALejournalIMF010167 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451930955 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Is Inflation Effective for Liquidating Short-Term Nominal Debt? Washington, D.C. : International Monetary Fund, 1989. 1 online resource (14 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 The possibility of reducing the real value of domestic non-indexed government debt through inflation is studied. A central result is that this kind of debt liquidation is possible even though prices are sticky and government bonds are short term. A policy implication is that short bond maturities are no safeguard against surprise devaluations intended to lower the burden of the debt. If devaluation incentives are present, it is further argued that nominal non-indexed bonds could give rise to situations where devaluations are a consequence of self-fulfilling expectations cycles. Any views expressed in the Departmental Memoranda (DM) Series represent the opinions of the authors and, unless otherwise indicated, should not be interpreted as official Fund views. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/002 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/002/001.1989.issue-002-en.xml IMF e-Library