Disinflation, External Vulnerability, and Fiscal Intransigence

Some Unpleasant Mundellian Arithmetic

Disinflation, External Vulnerability, and Fiscal Intransigence
This paper examines the policy challenges a country faces when it wants to both reduce inflation and maintain a sustainable external position. Mundell’s (1962) policy assignment framework suggests that these two goals may be mutually incompatible unless monetary and fiscal policies are properly coordinated. Unfortunately, if the fiscal authority... READ MORE...

Publication date: May 2017
ISBN 9781484300640
$18.00

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