We develop a model that captures important features of debt crises of the Brazilian type. Its applicability to Brazil …, a relatively low debt/GDP ratio, low inflation, etc.); and (2) the trigger for the crisis appears to be the forthcoming …

This paper studies the patterns of inflation skewness in 56 countries. Monthly data suggests that inflation is … a developing country that uses inflation tax and external borrowing as the residual means for fiscal financing. The … model predicts a convex dependency of inflation on output, where inflation skewness depends positively on inflation …

macroeconomic targets, such as output growth and the rate of inflation. The model centers around the government budget constraint … and can be used to either derive the financeable deficit given inflation targets, or to derive an equilibrium inflation … require more financing than is compatible with sustainable external and internal borrowing, and existing targets for inflation …

Sovereign borrowing during inflation surges is a litmus test of a government's ability to withstand and navigate … inflation surges and how policy practices affect their ability to weather inflation shocks. We find that governments rely more … on foreign-currency debt from foreign investors during periods of high inflation. This pattern is particularly prevalent …

economic growth. This paper examines the roles of three other factors: primary budget surpluses, surprise inflation, and pegged … inflation and the pre-Accord peg. In this counterfactual, debt/GDP declines only to 74% in 1974, not 23% as in actual history …

1964-66 and in 1986.The inflation process in Brazil is highly institutional. It does not resemble hyperinflations where …This paper highlights the institutional features of the inflation process and contrasts two stabilization efforts in … pricing and wage setting are geared to the exchange rate by the hour, making it possible to stop inflation by simply …

Brazil has had a long period of high inflation. It peaked around 100 percent per year in 1964, decreased until the … indexation in accounting for the unique features of inflation dynamics in Brazil … crisis in the early 1980s. We show that the high-inflation period (1960-1994) was characterized by a combination of fiscal …

This paper presents a model of a high-inflation economy. The model includes the government budget constraint and money … demand equation of Cagan's 1956 model; an accelerationist Phillips curve that captures inflation inertia; and an aggregate …-spending equation that accounts for the effects of the inflation tax. The paper derives the dynamic effects of fiscal policy, incomes …

Inflation persists at moderate rates of 15-30 percent in all the countries that successfully reduced triple digit … inflations in the 1980s. Several other countries, for example Colombia, have experienced moderate inflation for prolonged periods …. In this paper we first set out theories of persistent inflation, which can be classified into those emphasizing …