The Role of Monetary Policy in Israel's 1985 Stabilization Effort
Comparing the performances of the Austral, Cruzado and Sheqel programs shows that the latent suggestion that a “heterodox” stabilization program can be implemented without tight fiscal discipline to support a restrictive monetary policy, though welcome in the politicial arena, is unwarranted. Freeze...
Corporate Author: | |
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Format: | eBook |
Language: | English |
Published: |
Washington, D.C.
International Monetary Fund
1990
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Series: | IMF Working Papers
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Subjects: | |
Online Access: | |
Collection: | International Monetary Fund - Collection details see MPG.ReNa |
Summary: | Comparing the performances of the Austral, Cruzado and Sheqel programs shows that the latent suggestion that a “heterodox” stabilization program can be implemented without tight fiscal discipline to support a restrictive monetary policy, though welcome in the politicial arena, is unwarranted. Freezes, pegs and controls alone are bound to lead to dismal failure. A highly restrictive monetary policy sustained by a tight fiscal policy persisting for a lengthy interval (in terms of the political horizon), supported by a stable exchange rate as a highly visible nominal anchor and by a temporary but significant erosion of real wages, have succeeded to contain a runaway inflation in Israel |
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Physical Description: | 100 pages |
ISBN: | 9781451980622 |