Interactions Between Inflation and Trade-Regime Objectives in Stabilization Programs / Anne O. Krueger.

Format:

Book

Author/Creator:

Krueger, Anne O.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0475.

NBER working paper series no. w0475

Language:

English

Subjects (All):

Foreign exchange.

Inflation (Finance).

Developing countries.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1980.

Cambridge, Massachusetts : National Bureau of Economic Research, 1980.

Summary:

This paper examines the relationship between macroeconomic objectives of controlling inflation and trade-regime objectives in stabilization programs of developing countries. It is seen that there need be, in principle, no close relationship between the two, as a crawling peg exchange-rate policy can prevent inflation from affecting the performance of the foreign sector. In practice, trade regime objectives have been linked with inflation-reducing objectives, often to the detriment of resource allocation and growth. Differences between devaluation under liberalized regimes and under exchange control are also examined.

Notes:

Print version record

May 1980.