| Description |
1 online resource (34 pages) |
| Series |
IMF working paper ; no. WP/04/111 |
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IMF working paper ; WP/04/111.
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| Contents |
Contents -- I. INTRODUCTION -- II. DISINFLATION EPISODES: SAMPLE SELECTION -- III. IS INFLATION DRIVEN BY EXPECTATIONS OF FUTURE INFLATION? -- IV. WHAT DETERMINES INFLATION EXPECTATIONS? -- V. INFLATION EXPECTATIONS AND PRIMARY FISCAL BALANCES -- VI. CONCLUSIONS -- References |
| Summary |
Is backward-looking behavior in pricing or imperfect credibility of stabilization efforts responsible for the failure of inflation rates to decline to targeted levels during many disinflation programs? This paper assesses the relative importance of these two factors during a number of disinflation attempts in developing and transition economies. Using survey data, we find that expectations of future inflation play a much more important role than past inflation in shaping the inflation process. We also find that an improvement in primary fiscal balances significantly reduces inflation expectations. This suggests that during stabilization episodes, priority should be given to building fiscal credibility by strengthening public finances |
| Bibliography |
Includes bibliographical references |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Inflation (Finance) -- Econometric models
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Inflation (Finance) -- Econometric models
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| Form |
Electronic book
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| Author |
Gelos, Gaston, author.
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Prati Musetti, Alessandro, author.
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International Monetary Fund. Research Department, issuing body.
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International Monetary Fund. Western Hemisphere Department, issuing body.
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| ISBN |
1282044184 |
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9781282044180 |
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9781451853506 |
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1451853505 |
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9781451898989 |
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1451898983 |
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