TY  - BOOK
AU  - Calvo,Guillermo
AU  - Végh Gramont,Carlos A.
TI  - Credibility and the Dynamics of Stabilization Policy: A Basic Framework 
T2  - IMF Working Papers; Working Paper
SN  - 1451945582 :
SN  - 1018-5941
PY  - 1990///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Exchange Rate
KW  - imf
KW  - Exchange Rates
KW  - Inflation Rate
KW  - Inflation
KW  - Real Exchange Rate
KW  - Argentina
N2  - This paper studies price stabilization policy under both predetermined and flexible exchange rates. Under predetermined exchange rates, a non-credible stabilization program results in an initial expansion of output, followed by a later recession. The initial expansion accompanies an appreciating real exchange rate. Under flexible exchange rates, the recession occurs at the beginning of the program. The real exchange rate appreciates sharply on impact but depreciates afterwards. Lack of credibility is more costly under predetermined exchange rates because the real effects are more pronounced
UR  - http://elibrary.imf.org/view/IMF001/01429-9781451945584/01429-9781451945584/01429-9781451945584.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451945584
ER  -