Assessing the impact of different nominal anchors on the credibility of stabilisation programmes
The paper compares the impact of announcing exchange-rate-based versus money-based stabilisation programmes in a cross-section of countries. The analysis finds that the effect of announcing exchange-rate-based programmes is more credible, in terms of reducing inflation inertia, than the outcome associated with implementing money-based programmes. But the gap between the magnitudes of the impacts from implementing the different strategies has been falling since the 1970s.
|Date of creation:||17 Jan 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Kingston University London, School of Economics, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2EE, UK|
Web page: http://fass.kingston.ac.uk/departments/economics/
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