Supply-Side Effects of Disinflation Programs

Supply-Side Effects of Disinflation Programs
This paper focuses on the short-run and long-run supply-side effects of disinflation programs in a two-sector economy. Fixing the exchange rate reduces the wedge between the return on foreign assets and that on domestic capital, leading to an increase in the latter. After an initial real exchange rate appreciation and increase in the production... READ MORE...

Publication date: July 1994
ISBN 9781451954425
$15.00

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