By any standard, Bolivia's economic crisis in the 1980's has been extraordinary. Like its neighbors. Bolivia suffered … from major external shocks, but the extent of economic collapse in the face of these shocks (including a hyperinflation … during 1984-85) suggests that internal factors as well as external shocks have been critical to Bolivia's poor economic …

of macroeconomic policymaking in Bolivia since the 1952 Revolution. Great stress is put on the weakness of fiscal … characteristics of Bolivia's international trade, focusing both on structural features (e.g., the heavy dependence on a small number … dynamics of the hyperinflation during 1982-85, focusing on the complex causal links among the budget deficit, the money supply …

After the economic reforms that followed the National Revolution of the 1950s, Bolivia seemed positioned for sustained … and a fixed exchange rate policy during the 1970s led to a debt crisis that began in 1977. From 1977 to 1986, Bolivia lost … almost all the gains in GDP per capita that it had achieved since 1960. In 1986, Bolivia started to grow again, interrupted …

Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an … explicit intermediate target. Inflation forecast targeting simplifies both implementation and monitoring of monetary policy …. The weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target …

current and future inflation innovations to revalue government debt, reducing reliance on distorting taxes; (2) the role of … inflation in optimal fiscal financing increases with the average maturity of government debt; (3) as average maturity rises, it … is optimal to tradeoff inflation for output stabilization; (4) inflation is relatively more important as a fiscal shock …

inflation and activity. If policy makers are guided by the welfare criterion of the representative household, globalization … forces also lead monetary policy to be more aggressive with regard to inflation fluctuations but, at the same time, more …

We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …