The Resource Sticky inflation and the real effects of exchange rate-based stabilization, Oya Celasun

Sticky inflation and the real effects of exchange rate-based stabilization, Oya Celasun

Label
Sticky inflation and the real effects of exchange rate-based stabilization
Title
Sticky inflation and the real effects of exchange rate-based stabilization
Statement of responsibility
Oya Celasun
Creator
Contributor
Author
Subject
Genre
Language
eng
Summary
Exchange rate-based inflation stabilization (ERBS) policies are associated with a boom-recession cycle in economic activity and sustained real exchange rate appreciation. A class of models in the literature has explained these empirical regularities with the lack of credibility of the stabilization plans. The lack-of-credibility models typically assume perfectly forward-looking pricing behavior without inflation stickiness and attribute the slow decline in inflation to the consumption boom that occurs due to the perceived temporariness of the ERBS policy. This paper tests the empirical validity of forward-looking pricing behavior in Mexico and Turkey, two countries which have experienced ERBS. It finds that the forward- and backward-looking components of inflation weigh approximately equally in pricing behavior, and therefore, that inflation is partially sticky. The paper then develops the theoretical implications of partial inflation stickiness in a lack of credibility model of ERBS and concludes that the presence of stickiness significantly reduces the persistence of the consumption boom predicted by the model, but helps to explain the recession in the late phase of the stabilization
Member of
Action
digitized
Cataloging source
OCLCE
Dewey number
332.41
Illustrations
illustrations
Index
no index present
LC call number
HG3881.5.I58
LC item number
W67 no.03/151
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
Series statement
IMF working paper
Series volume
WP/03/151
Label
Sticky inflation and the real effects of exchange rate-based stabilization, Oya Celasun
Publication
Antecedent source
file reproduced from original
Bibliography note
Includes bibliographical references (pages 31-33)
http://library.link/vocab/branchCode
  • net
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Color
black and white
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Control code
ocn647474822
Dimensions
unknown
Extent
1 online resource (33 pages)
File format
one file format
Form of item
online
Isbn
9781451902174
Media category
computer
Media MARC source
rdamedia
Media type code
c
Other physical details
illustrations
http://library.link/vocab/recordID
.b37169610
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
  • (OCoLC)647474822
  • imf1451902174
System details
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.

Library Locations

    • Deakin University Library - Geelong Waurn Ponds CampusBorrow it
      75 Pigdons Road, Waurn Ponds, Victoria, 3216, AU
      -38.195656 144.304955
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