Supply Side Effects Of Disinflation Programs

Author : Mr.Jorge Roldos
Publisher : International Monetary Fund
Page : 36 pages
File Size : 48,8 Mb
Release : 1994-07-01
Category : Business & Economics
ISBN : 9781451954425

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Supply-Side Effects of Disinflation Programs by Mr.Jorge Roldos Pdf

This paper focuses on the short-run and long-run supply-side effects of disinflation programs in a two-sector economy. Fixing the exchange rate reduces the wedge between the return on foreign assets and that on domestic capital, leading to an increase in the latter. After an initial real exchange rate appreciation and increase in the production of nontradables—due to a consumption boom—the new capital is gradually installed in the tradable sector. During this transitional period, further real appreciation takes place—as the expansion of the tradable sector pulls labor away from the nontradable sector—together with investment-driven deficits in the current account. We conclude that when appreciation and deficits are due to supply-side rigidities, rather than to credibility and/or price stickiness, no further policies (i.e., capital controls, incomes policies) are advisable.

Author : Jorge Roldós
Publisher : Unknown
Page : 36 pages
File Size : 40,6 Mb
Release : 2006
Category : Electronic
ISBN : OCLC:1291212928

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Supply-Side Effects of Disinflation Programs by Jorge Roldós Pdf

This paper focuses on the short-run and long-run supply-side effects of disinflation programs in a two-sector economy. Fixing the exchange rate reduces the wedge between the return on foreign assets and that on domestic capital, leading to an increase in the latter. After an initial real exchange rate appreciation and increase in the production of nontradables--due to a consumption boom--the new capital is gradually installed in the tradable sector. During this transitional period, further real appreciation takes place--as the expansion of the tradable sector pulls labor away from the nontradable sector--together with investment-driven deficits in the current account. We conclude that when appreciation and deficits are due to supply-side rigidities, rather than to credibility and/or price stickiness, no further policies (i.e., capital controls, incomes policies) are advisable.

Author : Pierre-Richard Agénor,Lodovico Pizzati
Publisher : World Bank Publications
Page : 38 pages
File Size : 55,8 Mb
Release : 2000
Category : Aggregate Demand
ISBN : 9784060532527

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Disinflation and the Supply Side by Pierre-Richard Agénor,Lodovico Pizzati Pdf

What role do supply-side factors play in the dynamics of output and absorption in exchange rate-based stabilization programs?

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 244 pages
File Size : 42,8 Mb
Release : 1995-01-01
Category : Business & Economics
ISBN : 9781451957068

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IMF Staff papers by International Monetary Fund. Research Dept. Pdf

This paper provides a critical survey of the literature on politico-institutional determinants of the government budget. We organize our discussion around two questions: Why did certain OECD countries, but not others, accumulate large public debts? Why did these fiscal imbalances appear in the last twenty years rather than sooner? We begin by discussing the “tax smoothing” model and conclude that this approach alone cannot provide complete answers to these questions. We then proceed to a discussion of political economy models, which we organize into six groups: (1) models based upon opportunistic policy makers and naive voters with “fiscal illusion”; (2) models of intergenerational redistributions; (3) models of debt as a strategic variable, linking the current government with the next one; (4) models of coalition governments; (5) models of geographically dispersed interests; and (6) models emphasizing the effects of budgetary institutions. We conclude by briefly discussing policy implications.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 94 pages
File Size : 41,8 Mb
Release : 1995-02-01
Category : Business & Economics
ISBN : 9781451843200

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Working Paper Summaries (WP/94/77 - WP/94/147) by International Monetary Fund Pdf

Authors of Working Papers are normally staff members of the Fund or consultants, although on occasion outside authors may collaborate with a staff member in writing a paper. The views expressed in the Working Papers or their summaries are, however, those of the authors and should not necessarily be interpreted as representing the views of the Fund. Copies of individual Working Papers and information on subscriptions to the annual series of Working Papers may be obtained from IMF Publication Services, International Monetary Fund, 700 19th Street, Washington, D.C. 20431. Telephone: (202) 623-7430 Telefax: (202) 623-7201 This compilation of summaries of Working Papers released during July-December 1994 is being issued as a part of the Working Paper series. It is designed to provide the reader with an overview of the research work performed by the staff during the period.

Author : Ben S. Bernanke,Julio Rotemberg
Publisher : MIT Press
Page : 364 pages
File Size : 45,7 Mb
Release : 1996
Category : Business & Economics
ISBN : 0262522055

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NBER Macroeconomics Annual 1995 by Ben S. Bernanke,Julio Rotemberg Pdf

Contents : Wage Inequality and Regional Unemployment Persistence: U.S. vs. Europe, Guiseppe BErtola and Andreas Ichino. Capital Utilization and Returns to Scale, Craig Burnside, Martin Eichenbaum, and Sergio Rebelo. Banks and Derivatives, Gary Gorton and Richard Rosen. Exchange-Rate-Based Stabilizations: Theory and Evidence, Sergio Rebelo and Carlos Vegh. Inflation Indicators and Inflation Policy, Stephen Cecchetti. Recent Central Bank Reforms and the Role of Price Stability as the Sole Objective of Monetary Policy, Carl Walsh. Is Central Bank Independence (and Low Inflation) the Result of Effective Financial Opposition to Inflation?, Adam Posen. The Unending Quest for Monetary Salvation, Stanley Fischer.

Author : Faruk Selcuk,Libby Rittenberg,Aykut Kibritcioglu
Publisher : Routledge
Page : 190 pages
File Size : 42,8 Mb
Release : 2018-04-27
Category : Social Science
ISBN : 9781351739276

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Inflation and Disinflation in Turkey by Faruk Selcuk,Libby Rittenberg,Aykut Kibritcioglu Pdf

This title was first published in 2002. Since the 1990s Turkey has experienced a number of disasters, both physical and economic. The result has been a decrease in economic performance compared to other European states. This study addresses the country's ongoing economic struggles.

Author : Mr.Alexander W. Hoffmaister,Mr.Carlos A. Végh Gramont
Publisher : International Monetary Fund
Page : 46 pages
File Size : 54,7 Mb
Release : 1995-10-01
Category : Business & Economics
ISBN : 9781451852219

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Disinflation and the Recession-Now-Versus-Recession-Later Hypothesis by Mr.Alexander W. Hoffmaister,Mr.Carlos A. Végh Gramont Pdf

Both analytical models and casual empiricism suggest that the timing of the recessionary costs associated with inflation stabilization in chronic inflation countries may depend on the nominal anchor which is used. Under money-based stabilization, the recession occurs at the beginning of the program, while under exchange rate-based stabilization the recession occurs later in the program. This paper provides a first attempt to formally test this hypothesis using a vector-autoregression model for Uruguay. The impulse response of output to different stabilization policies is broadly consistent with the “recession-now-versus-recession-later” hypothesis. The evidence also suggests, however, that the effectiveness of a monetary anchor in reducing inflation is hindered by the high degree of dollarization of the Uruguayan economy.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 144 pages
File Size : 40,8 Mb
Release : 2000-01-01
Category : Business & Economics
ISBN : 1557759804

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Research Activities of the IMF, January 1991-December 1999 by International Monetary Fund Pdf

Research activity in the IMF emphasizes the links between the organization's policy and operational concerns. The main objectives of research is IMF staff understanding of policy and operational issues relevant to the institution, and to improve the analytical quality of the work prepared for management and the Executive Board and the advice provided to member countries. The scope of research in the IMF is defined by the purposes and functions of the institution. In order to foster innovation and ensure quality control, the IMF makes much of its research available outside the institution and encourages staff to interact with academia and other research organizations through conferences, seminars, and occasional joint research projects. The visiting scholar’s program has also enhanced the quality of research done in the IMF. This program brings in leading members of the economics profession from around the world to assist in the preparation of papers for the Executive Board and to conduct research on IMF-related issues.

Author : Carlos A. Vegh
Publisher : MIT Press
Page : 911 pages
File Size : 50,9 Mb
Release : 2013-08-30
Category : Business & Economics
ISBN : 9780262018906

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Open Economy Macroeconomics in Developing Countries by Carlos A. Vegh Pdf

A comprehensive and rigorous text that shows how a basic open economy model can be extended to answer important macroeconomic questions that arise in emerging markets. This rigorous and comprehensive textbook develops a basic small open economy model and shows how it can be extended to answer many important macroeconomic questions that arise in emerging markets and developing economies, particularly those regarding monetary, fiscal, and exchange rate issues. Eschewing the complex calibrated models on which the field of international finance increasingly relies, the book teaches the reader how to think in terms of simple models and grasp the fundamentals of open economy macroeconomics. After analyzing the standard intertemporal small open economy model, the book introduces frictions such as imperfect capital markets, intertemporal distortions, and nontradable goods, into the basic model in order to shed light on the economy's response to different shocks. The book then introduces money into the model to analyze the real effects of monetary and exchange rate policy. It then applies these theoretical tools to a variety of important macroeconomic issues relevant to developing countries (and, in a world of continuing financial crisis, to industrial countries as well), including the use of a nominal interest rate as a main policy instrument, the relative merits of flexible and predetermined exchange rate regimes, and the targeting of “real anchors.” Finally, the book analyzes in detail specific topics such as inflation stabilization, “dollarization,” balance of payments crises, and, inspired by recent events, financial crises. Each chapter includes boxes with relevant empirical evidence and ends with exercises. The book is suitable for use in graduate courses in development economics, international finance, and macroeconomics.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 124 pages
File Size : 40,5 Mb
Release : 1999-09-24
Category : Business & Economics
ISBN : 1557758603

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Research Activities of the IMF, January 1991-December 1998 by International Monetary Fund Pdf

A selective index of major research papers prepared by IMF staff in 1991-98.

Author : Sanjaya Acharya
Publisher : Routledge
Page : 241 pages
File Size : 42,7 Mb
Release : 2013-03-01
Category : Business & Economics
ISBN : 9781136671654

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Pro-poor Growth and Liberalization in Developing Economies by Sanjaya Acharya Pdf

By looking at the link between trade liberalization and pro-poor growth in Nepal, this book explores how a developing and transition economy can attain higher and pro-poor growth along with the ongoing trend of globalization. The author develops a social accounting database for Nepal and applies it to quantify computable general equilibrium (CGE) model to investigate the trade-offs between growth and distribution that are associated with opening up the economy and deregulating it. The book presents a number of pragmatic scenarios that bring about the desired pro-poor growth effects in order to demonstrate possible outcomes for policy making. The research findings apply to other economies with similar macroeconomic structure to Nepal; those small economies with a dominant, traditional, and stagnant agriculture; fragile industrial base, weak and volatile external sector, and almost half of the population living below the poverty line. This book will be of considerable interest to students and scholars in the areas of development economics, political economy of policy reforms, and trade and poverty with special emphasis on South Asia.

Author : Anonim
Publisher : World Bank Publications
Page : 42 pages
File Size : 50,7 Mb
Release : 2024-07-03
Category : Electronic
ISBN : 9780401301029

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Exchange Rate Appreciations, Labor Market Regidities, and Informality by Anonim Pdf

Author : A. Leijonhufvud
Publisher : Springer
Page : 285 pages
File Size : 54,5 Mb
Release : 2016-03-11
Category : Business & Economics
ISBN : 9781403939616

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Monetary Theory as a Basis for Monetary Policy by A. Leijonhufvud Pdf

Since the inflationary 1970s, theoretical work on monetary policy has concentrated almost exclusively on price-level stabilization and the avoidance of nominal shocks. In the aftermath of the collapse of financial bubbles in various parts of the world, the accomplishments and limitations of this dominant approach are debated in this volume edited by Axel Leijonhufvud, with contributions by a number of noted monetary economists, including Nobel Laureate Robert Lucas.

Author : Oya Celasun
Publisher : International Monetary Fund
Page : 35 pages
File Size : 42,6 Mb
Release : 2003-07-01
Category : Business & Economics
ISBN : 9781451857054

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Sticky Inflation and the Real Effects of Exchange Rate Based Stabilization by Oya Celasun Pdf

Exchange rate-based inflation stabilization (ERBS) policies are associated with a boom-recession cycle in economic activity and sustained real exchange rate appreciation. A class of models in the literature has explained these empirical regularities with the lack of credibility of the stabilization plans. The lack-of-credibility models typically assume perfectly forward-looking pricing behavior without inflation stickiness and attribute the slow decline in inflation to the consumption boom that occurs due to the perceived temporariness of the ERBS policy. This paper tests the empirical validity of forward-looking pricing behavior in Mexico and Turkey, two countries which have experienced ERBS. It finds that the forward- and backward-looking components of inflation weigh approximately equally in pricing behavior, and therefore, that inflation is partially sticky. The paper then develops the theoretical implications of partial inflation stickiness in a lack of credibility model of ERBS and concludes that the presence of stickiness significantly reduces the persistence of the consumption boom predicted by the model, but helps to explain the recession in the late phase of the stabilization.