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Disinflation and Overvaluation

In: The Political Dimension of Economic Growth

Author

Listed:
  • Rudiger Dornbusch

    (Massachusetts Institute of Technology)

Abstract

For the most part, currency crises are not accidents. They come at the tail-end of a disinflation strategy that has relied too heavily on the nominal exchange rate. The question is why policy-makers should run the risk of a currency collapse. The jury is still out, but the experiences of three countries reviewed here offer some ideas.

Suggested Citation

  • Rudiger Dornbusch, 1998. "Disinflation and Overvaluation," International Economic Association Series, in: Silvio Borner & Martin Paldam (ed.), The Political Dimension of Economic Growth, chapter 12, pages 227-242, Palgrave Macmillan.
  • Handle: RePEc:pal:intecp:978-1-349-26284-7_12
    DOI: 10.1007/978-1-349-26284-7_12
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