Cover IMF Staff Papers
IMF Staff papers: Volume 36 No. 3
Author:
International Monetary Fund. Research Dept.
Search for other papers by International Monetary Fund. Research Dept. in
Current site
Google Scholar
PubMedClose
Series:
IMF Staff Papers
Volume/Issue:
Volume 1989: Issue 003
Language:
English
Publication Date:
01 Jan 1989
DOI:
https://doi.org/10.5089/9781451973037.024
ISBN:
9781451973037
ISSN:
1020-7635
Pages:
228
Keywords:
SP; debt; market value; debt reduction; buy-back benefit; gaining policy credibility; buy-back scheme; secondary market market price; collection cost; Exchange rates; Debt reduction; Inflation
Download PDF (7.3 MB) Download Epub
Although accommodative policies and widespread indexation may account for the persistence of high inflation, they cannot explain changes in the inflation rate. The causes of such changes for the high-inflation episodes immediately preceding the recent “heterodox” attempts at stabilization in Argentina, Brazil, and Israel are examined by computing historical decompositions of these episodes based on vector autoregressions, distinguishing between the “fiscal” and “balance of payments” views of their causes. In all three cases, nominal exchange rate shocks played the dominant role in triggering an acceleration of inflation. [JEL 134]
  • Collapse
  • Expand
Cover IMF Staff Papers
IMF Staff Papers
ISSN:
1020-7635
Publisher:
International Monetary Fund
Volume 1989: Issue 003