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Abstract
Nominal anchors—whether an exchange rate peg or a money supply rule—are widely recognized as an important component of a program to reduce or control inflation, or reinforce discipline in financial policies and wage developments. Therefore, the fact that nominal anchors have not been adopted in every IMF-supported stabilization program, particularly in those designed to lower inflation, may lead to the conjecture that these programs have not placed enough emphasis on the reduction or the containment of inflation. Rather, according to this argument, such programs have been geared toward addressing external crises, in which devaluations may play a major role and credit ceilings designed to achieve ambitious targets for reserve accumulation are favored over money rules.
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