Munich Personal RePEc Archive

Stopping High Inflation: An Analytical Overview

Vegh, Carlos (1991): Stopping High Inflation: An Analytical Overview.

[img]
Preview
PDF
MPRA_paper_20175.pdf

Download (18Mb) | Preview

Abstract

This paper reviews the evidence on stabilization plans in high inflation countries within a unified theoretical framework. The evidence suggests that hyperinflations have been stopped almost instantaneously with no major output costs, while stabilization programs in chronic inflation countries have resulted in an initial expansion followed by a later recession, in addition to a sustained real exchange rate appreciation and current account deficits. These outcomes turn out to be consistent with the predictions of the analytical model.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.