to be known as ‘the opportunistic approach to disinflation’. The implied policy rule is non-linear and path … disinflation, as well as the stochastic steady-state distributions of inflation and output under opportunistic versus linear policy …

introduction of microfoundations helps to resolve the puzzle recently raised by Laurence Ball, namely that disinflation in … staggered pricing models causes a boom. In our model disinflation, whether unanticipated or anticipated, unambiguously causes a …

between trade liberalization and exchange rate stability. The credibility of disinflation may be endangered by early …

inflation mean and large nominal output variability in the pre-stabilization phase. A useful concept for disinflation episodes … lower this ratio the less painful is disinflation. The new classical approach, pioneered by Lucas (1973), emphasized the …

The Paper studies the design of efficient disinflation programmes in open economies using the sacrifice ratio; that is … sacrifice ratio: costless disinflation is possible, because the inflation process is purely forward-looking. There is inertia or … the disinflation process may raise the sacrifice ratio relative to a policy that keeps the real exchange rate constant …

application to disinflation shows that the feedback Nash policy may be considerably more costly than the 'optimal', but …

disinflation under inflation targeting policies. The analysis is motivated by the disinflation performance of many inflation …-targeting countries, in particular the gradual Chilean disinflation with temporary annual targets. At the start of the disinflation … adaptive learning lowers the cost of disinflation. This reduction can be exploited by a gradual approach to disinflation. Firms …