Published in:IMF Working Paper, Vol. , pp. 1-28, 1988
Extent:
1 Online-Ressource (28 p)
Language:
Not determined
DOI:
10.2139/ssrn.884928
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 22, 1988 erstellt
Description:
Although accommodative policies and widespread indexation may account for the persistence of high inflation, they cannot explain changes in the inflation rate. This paper examines the causes of such changes for the high-inflation episodes immediately preceding the recent quot;heterodoxquot; attempts at stabilization in Argentina, Brazil, and Israel. An attempt is made to distinguish between the quot;fiscalquot; and quot;balance of paymentsquot; views of the causes of high inflation by computing historical decompositions of these episodes based on vector autoregressions. In all three cases, the results indicate that nominal exchange rate shocks played the dominant role in triggering an acceleration of inflation