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A Cost-Benefit Analysis of Going from Low Inflation to Price Stability in Spain

In: The Costs and Benefits of Price Stability

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  • Juan Dolado

Abstract

One of the most significant economic developments of recent years in industrialized countries has been the increasing orientation of macroeconomic policies - and of monetary policies in particular - to achieving lower inflation rates. This has led to a move from low inflation to price stability in a number of countries and, in particular, in Spain. The purpose of this paper is to provide some empirical evidence on the net economic gains that have been obtained in the case of Spain from achieving inflation rates which are low enough to be considered consistent with a situation of price stability.
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Suggested Citation

  • Juan Dolado, 1999. "A Cost-Benefit Analysis of Going from Low Inflation to Price Stability in Spain," NBER Chapters, in: The Costs and Benefits of Price Stability, pages 95-132, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:7772
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    Cited by:

    1. Camba-Méndez, Gonzalo & Garcí­a, Juan Angel & Rodriguez-Palenzuela, Diego, 2003. "Relevant economic issues concerning the optimal rate of inflation," Working Paper Series 278, European Central Bank.
    2. Dolado, Juan José & López-Salido, J. David & Vega, Juan Luis, 1997. "Spanish unemployment and inflation persistence : ares there phillips trade-offs?," UC3M Working papers. Economics 6041, Universidad Carlos III de Madrid. Departamento de Economía.
    3. Ángel Estrada & Ignacio Hernando & J. David López-Salido, 2000. "Measuring the NAIRU in the Spanish Economy," Working Papers 0009, Banco de España.
    4. repec:zbw:bofitp:2002_016 is not listed on IDEAS
    5. Blaszkiewicz, Monika & Konieczny, Jerzy & Myslinska, Anna & Radziwil, Artur & Przemyslaw, Wozniak, 2002. "Some benefits of reducing inflation in transition economies," BOFIT Discussion Papers 16/2002, Bank of Finland, Institute for Economies in Transition.
    6. Jorge Martínez Pagés & Luis Ángel Maza, 2003. "Analysis of house prices in Spain," Working Papers 0307, Banco de España.
    7. Mr. Armando Méndez Morales, 1998. "Determinants of Growth in an Error: Correction Model for El Salvador," IMF Working Papers 1998/104, International Monetary Fund.
    8. Leo Bonato, 1998. "The benefits of price stability: some estimates for New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 61, September.
    9. Hasan Bakhshi & Andrew Haldane & Neal Hatch, 1998. "Some costs and benefits of price stability in the UK," Bank of England working papers 78, Bank of England.
    10. Mr. Nicolas Sobczak, 1998. "Disinflation in Spain: The Recent Experience," IMF Working Papers 1998/106, International Monetary Fund.
    11. Kozo Ueda, 2001. "Costs of Inflation in Japan: Tax and Resource Allocation," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    12. Javier Andrés & Ignacio Hernando & J. David López-Salido, 1999. "Assessing the benefits of price stability: The international experience," Estudios Económicos, Banco de España, number 69.
    13. Mark A. Wynne, 2008. "How should central banks define price stability?," Globalization Institute Working Papers 08, Federal Reserve Bank of Dallas.
    14. Brian O'Reilly & Mylène Levac, 2000. "Inflation and the Tax System in Canada: An Exploratory Partial-Equilibrium Analysis," Staff Working Papers 00-18, Bank of Canada.
    15. José Manuel González Páramo, 2003. "Midiendo el coste marginal en bienestar de una reforma impositiva," Hacienda Pública Española / Review of Public Economics, IEF, vol. 166(3), pages 115-147, September.
    16. Manuel Balmaseda & Miguel Sebastián & Patry Tello, 2002. "Spain Accession to the EMU - A Long and Hilly Road," The Economic and Social Review, Economic and Social Studies, vol. 33(2), pages 195-222.
    17. Blaszkiewicz, Monika & Konieczny, Jerzy & Myslinska, Anna & Radziwil, Artur & Przemyslaw, Wozniak, 2002. "Some benefits of reducing inflation in transition economies," BOFIT Discussion Papers 16/2002, Bank of Finland Institute for Emerging Economies (BOFIT).
    18. Ferran Sancho, 2004. "Una estimación del coste marginal en bienestar del sistema impositivo en España," Hacienda Pública Española / Review of Public Economics, IEF, vol. 169(2), pages 117-132, June.
    19. Antonio Sánchez Soliño, 2012. "Optimización de la transferencia de riesgos en los Contratos de Infraestructuras y Servicios Públicos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 201(2), pages 67-91, June.

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    More about this item

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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