Is Inflation Effective for Liquidating Short-Term Nominal Debt?

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 ar...

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מחבר תאגידי: International Monetary Fund
פורמט: כתב-עת
שפה:English
יצא לאור: Washington, D.C. : International Monetary Fund, 1989.
סדרה:IMF Working Papers; Working Paper ; No. 1989/002
גישה מקוונת:Full text available on IMF
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245 1 0 |a Is Inflation Effective for Liquidating Short-Term Nominal Debt? 
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300 |a 1 online resource (14 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 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. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1989/002 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1989/002/001.1989.issue-002-en.xml  |z IMF e-Library