High real interest rates in the aftermath of disinflation: Is it a lack of credibility?

Journal of Development Economics

Volumn 55, Issue 1, 1998, Pages 191-214

  Kaminsky, Graciela L ^a   Leiderman, Leonardo ^b  

^a FEDERAL RESERVE BOARD   (United States)

^b TEL AVIV UNIVERSITY   (Israel)

Author keywords

Credibility crisis; Currency crisis; Stabilization programs

Indexed keywords

INTEREST RATES; MODELLING APPROACH; STABILISATION PROGRAMME;

ARGENTINA; ISRAEL; MEXICO;

EID: 0031902968     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3878(97)00062-X     Document Type: Article

References (20)

1. Buffie, E., 1990. Economic policy and foreign debt in Mexico. In: Sachs, J. (Ed.), Developing Country Debt and Economic Performance, Vol. 2. Univ. of Chicago Press, London.
2. Calvo, G.A., 1992. Are high interest rates effective for stopping high inflation? Some skeptical notes. World Bank Econ. Rev. 6, 55-69.
3. Calvo, G.A., Guidotti, P.E., 1992. Interest rates, financial structure, and growth: Bolivia in a comparitive perspective. Unpublished manuscript. International Monetary Fund.
4. Calvo, G.A., Kaminsky, G.L., 1991. Debt relief and debt rescheduling: The optimal-contract approach. J. Dev. Econ. 36, 5-36.
5. Calvo, G.A., Végh, C.A., 1993. Exchange rate-based stabilization under imperfect credibility. In: Worgotter, A., Frisch, H. (Eds.), Open Economy Macroeconomics. MacMillan, London, pp. 3-28.
6. Canavese, A., di Tella, G., 1988. Inflation stabilization or hyperinflation avoidance? The case of the Austral plan in Argentina 1985-1987. In: Bruno, M., di Tella, G., Dornbusch, R., Fischer, S. (Eds.), Inflation Stabilization: The Experience of Israel, Argentina, Brazil, Bolivia, and Mexico. MIT Press, Cambridge, MA.
7. Cavallo, D., Pena, 1983. Deficit fiscal, endeudamiento del gobierno y tasa de inflación: Argentina, 1940-1982. Estudios 6 (26), 1.
8. Cukierman, A., Liviatan, N., 1992. The dynamics of optimal gradual stabilizations. World Bank Econ. Rev. 6, 439-458.
9. Dornbusch, R., 1986. Money, interest rates and stabilization. Rev. Econ. Conditions Italy 3, 439-453.
10. Dornbusch, R., Fischer, S., 1986. Stopping hyperinflations past and present. Weltwirtschaftliches Archiv 122 (1), 1-47.
11. Dornbusch, R., de Pablo, J.C., 1990. Debt and macroeconomic instability in Argentina. In: Sachs, J. (Ed.), Developing Country Debt and Economic Performance, Vol. 2. Univ. of Chicago Press, London.
12. Evans, C., Lewis, K., 1992. Do Expected Shifts in Inflation Policy Affect Real Rates? NBER working paper No. 4134.
13. Hamilton, J., 1988. Rational expectations econometric analysis of changes in regime: an investigation of the term structure of interest rates. J. Econ. Dynamics Control 12, 385-423.
14. Khor, E., Rojas-Suarez, L., 1991. Interest rates in Mexico: The role of exchange rate expectations and international creditworthiness. IMF Staff Papers 38, 850-870.
15. Leiderman, L., 1993. Inflation and Disinflation: The Israeli Experiment. Univ. of Chicago Press, Chicago.
16. Lucas Jr., R.E., 1990. Comment on World Real Interest Rates. In: Barro, R.J., Sala-i-Martin, X. (Eds.), Blancharo, O. Fischer, S. NBER Macroeconomics Annual.
17. Pazos, F., 1972. Chronic Inflation in Latin America, Praeger Publishers, New York.
18. Rebelo, S., Végh, C., 1995. Real Effects of Exchange Rate-Based Stabilization: An Analysis of Competing Theories. National Bureau of Economic Research working paper No. 5197.
19. Ruge-Murcia, F., 1995. Credibility and changes in policy regime. J. Political Econ. 103, 176-208.
20. Végh, C.A., 1992. Stopping high inflation: An analytical overview. IMF Staff Papers 39, 626-695.