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Author Hoffmaister, Alexander W.

Title Disinflation and the recession-now-versus-recession-later hypothesis : evidence from Uruguay / prepared by Alexander W. Hoffmaister and Carlos A. Vegh
Published Washington, D.C. : International Monetary Fund, [1995]
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Description 1 online resource (iii, 33 pages) : illustrations
Series IMF working paper ; 95/99
IMF working paper ; 95/99
Summary Annotation Both analytical models and casual empiricism suggest that the timing of the recessionary costs associated with inflation stabilization in chronic inflation countries may depend on the nominal anchor which is used. Under money-based stabilization, the recession occurs at the beginning of the program, while under exchange rate-based stabilization the recession occurs later in the program. This paper provides a first attempt to formally test this hypothesis using a vector-autoregression model for Uruguay. the impulse response of output to different stabilization policies is broadly consistent with the recession-now-versus-recession-later hypothesis. the evidence also suggests, however, that the effectiveness of a monetary anchor in reducing inflation is hindered by the high degree of dollarization of the Uruguayan economy
Bibliography Includes bibliographical references (pages 29-33)
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. MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Business cycles -- Mathematical models.
Deflation (Finance) -- Mathematical models.
Deflation (Finance) -- Uruguay.
Economic stabilization -- Mathematical models.
Economic stabilization -- Uruguay.
Form Electronic book
Author Végh Gramont, Carlos A., 1958-
International Monetary Fund. Research Department.
ISBN 145521812X