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explosion of inflation during his administration (above 1,500% on a six-month annualized measure) was predictable, and that the … that the combination of runaway inflation, shortages, and black markets generated major disaffection among the middle class …
Persistent link: https://www.econbiz.de/10014437020
Persistent link: https://www.econbiz.de/10013480802
inflation: the "myopic? government approach and the "weak" government approach. In myopic government models inflation is the … deliberate outcome of politicians strategic behavior, while in weak government models inflation is the unavoidable result of a … political developments in 76 countries for the period 1971-1982. Using a number of alternative definitions of the inflation tax …
Persistent link: https://www.econbiz.de/10012475286
countries. We first test the optimal taxation theory of inflation for a grip of 21 LDCs. We find that the implications of this …In this paper we investigate erririca1ly the determinants of inflation, seigniorage an fiscal deficits in developing … theory is rejected for all the countries. We then proceed to implement a number of tests based on the new political economy …
Persistent link: https://www.econbiz.de/10012475534
The importance of seignorage relative to other sources of government revenue differs markedly across countries. The main theoretical implication of this paper is that countries with more unstable and polarized political systems rely more heavily on seignorage. This result is obtained within the...
Persistent link: https://www.econbiz.de/10012475838
In this paper I analyze the work on exchange rates and external imbalances by University of Chicago faculty members during the university's first hundred years, 1892-1992. Many people associate Chicago's views with Milton Friedman's advocacy for flexible exchange rates. But, of course, there was...
Persistent link: https://www.econbiz.de/10014447249
Persistent link: https://www.econbiz.de/10001636970
This paper analyzes the effectiveness of capital controls, in particular the Chilean experience with the use of the unremunerated reserve requirement. We examine the effects on interest rates, real exchange rate, and the volume and composition of capital inflows. The effects are elusive and it...
Persistent link: https://www.econbiz.de/10012471122
Exchange rates have been at the center of economic debates in emerging economies. Issues related to the feasibility of flexible exchange rates, the relationship between exchange rate volatility and growth, and the role of exchange rate overvaluation in recent crises, among other, have been...
Persistent link: https://www.econbiz.de/10012471561
In this paper a general equilibrium intertemporal model with optimizing consumers and producers is developed to analyze how different policies geared at liberalizing the current and capital accounts of the balance of payments affect the equilibrium real exchange rate (RER). In particular, the...
Persistent link: https://www.econbiz.de/10012476907