Advanced Search
MyIDEAS: Login

Is Delayed Disinflation More Costly?

Contents:

Author Info

  • Charles L. Weise

    ()
    (School of Business Administration, College of William and Mary)

  • Charles L. Weise

    (Department of Economics, Gettysburg College)

Abstract

An often-stated piece of monetary policy wisdom is that postponing disinflation raises the ultimate cost of disinflation. However, there is little empirical work that directly tests the validity of this view. This paper is a study of the relation between the duration of inflation and the cost of subsequent disinflation using 67 disinflation episodes in OECD countries from 1960 through 1993. The estimates indicate that delaying disinflation raises the output loss per unit of inflation reduction, although the effect is not statistically significant in all models. The largest marginal effects of delay occur soon after inflation is allowed to get under way, a finding consistent with a rapid decline in the credibility of the inflating central bank.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 67 (2001)
Issue (Month): 3 (January)
Pages: 701-712

as in new window
Handle: RePEc:sej:ancoec:v:67:3:y:2001:p:701-712

Contact details of provider:
Web page: http://www.southerneconomic.org/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fève, Patrick & Matheron, Julien & Sahuc, Jean-Guillaume, 2007. "Disinflation Shocks in the Eurozone: a DSGE Perspective," IDEI Working Papers 483, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Fève, Patrick & Matheron, Julien & Sahuc, Jean-Guillaume, 2009. "Inflation Target Shocks and Monetary Policy Inertia in the Euro Area," TSE Working Papers 09-060, Toulouse School of Economics (TSE).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:67:3:y:2001:p:701-712. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.