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Inflation and the costs of stabilization : country experiences, conceptual issues, and policy lessons

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  • Solimano, Andres

Abstract

The macroeconomic effects and the actual costs of different anti-inflationary programs is a subject of great importance for the design of stabilization policies. This paper reviews several historical anti-inflationary programs and some of the recent past. The purpose of the paper is to help understand current difficulties with stabilization, especially in Latin America. The emphasis of each experience reviewed is on the cost of stabilization and the role played by fiscal reform, the availability of foreign resources, the stabilization of the exchange rate and the distributive conflict, relating to the success or failure of the particular anti-inflationary program studied. In addition special attention is given to the existing controversies on the causes and cures of inflation in the literature on stabilization.

Suggested Citation

  • Solimano, Andres, 1989. "Inflation and the costs of stabilization : country experiences, conceptual issues, and policy lessons," Policy Research Working Paper Series 226, The World Bank.
    • Handle: RePEc:wbk:wbrwps:226
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    References listed on IDEAS

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    4. Rudiger Dornbusch & Mario Henrique Simonsen, 1987. "Inflation Stabilization with Incomes Policy Support: A Review of the Experience in Argentina, Brazil and Israel," NBER Working Papers 2153, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Vegh, Carlos, 1991. "Stopping High Inflation: An Analytical Overview," MPRA Paper 20175, University Library of Munich, Germany.
    2. Kiguel, Miguel A. & Liviatan, Nissan, 1989. "The old and the new in heterodox stabilization programs : lessons from the 1960s and the 1980s," Policy Research Working Paper Series 323, The World Bank.

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