Since 2014
The Benefit of Currency Substitution during High Inflation and Stabilization
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
The Benefit of Currency Substitution during High Inflation and Stabilization
The Benefit of Currency Substitution during High Inflation and Stabilization |
|
| Creator |
Rostowski, Jacek
|
|
| Subject |
—
|
|
| Description |
Allowing currency substitution in a very high inflation helps to maintain the level of output, as, the distortion of the information carried by prices is mitigated. The total (primary plus secondary) money supply may increase if currency substitution is permitted. Currency substitution does not even necessarily reduce the real primary money stock. Moreover, the demand for the primary money fragments at very high rates of inflation, which means that the authorities may loose little when they give up the attempt to obtain inflation tax revenue. Currency substitution need be no more expensive, in term of the real resources it consumes, than is indexation. Finally the availability of a second stable currency may reduce the severity of post-stabilization recessions.
The Benefit of Currency Substitution during High Inflation and Stabilization |
|
| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
|
|
| Contributor |
—
— |
|
| Date |
2010-03-11
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
|
| Format |
application/pdf
|
|
| Identifier |
http://www.rae-ear.org/index.php/rae/article/view/220
|
|
| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 7, No 1 (1992); 91-107
Revista de Análisis Económico – Economic Analysis Review; Vol 7, No 1 (1992); 91-107 0718-8870 0716-5927 |
|
| Language |
eng
|
|
| Relation |
http://www.rae-ear.org/index.php/rae/article/view/220/446
|
|