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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Détails bibliographiques
Auteur principal: Calvo, Guillermo
Autres auteurs: Vegh Gramont, Carlos
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 1991.
Collection:IMF Working Papers; Working Paper ; No. 1991/077
Accès en ligne:Full text available on IMF
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100 1 |a Calvo, Guillermo. 
245 1 0 |a Exchange-Rate-Based Stabilization under Imperfect Credibility /  |c Guillermo Calvo, Carlos Vegh Gramont. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1991. 
300 |a 1 online resource (34 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a 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 contrast, a non-credible stabilization results in an initial expansion of output, followed by a later recession. The inflation rate of home goods remains above the rate of devaluation throughout the program, thus resulting in a sustained real exchange rate appreciation. 
538 |a Mode of access: Internet 
700 1 |a Vegh Gramont, Carlos. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1991/077 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1991/077/001.1991.issue-077-en.xml  |z IMF e-Library