Monopolistic competition, credibility and the output costs of disinflation programs.
| Authors |
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| Publication date |
11-1988
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| Journal |
Journal of Development Economics
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| Volume | Issue number |
29 | 3
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| Pages (from-to) |
375--
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| Number of pages |
24
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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| Abstract |
This paper examines the interaction between lack of credibility of government monetary policy announcements and the price setting behavior of forward looking firms in Brazil, Argentina and Israel. It tries to Proof that interaction can lead to inertia extending beyond the price setting period; shows that lack of credibility lead to output losses during disinflation program; Asset price behavior.
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| Document type |
Article
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| Language |
English
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| Published at |
https://doi.org/10.1016/0304-3878(88)90052-1
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