Why Are Rates of Inflation So Low After large Devaluations

This Paper studies the behaviour of inflation after nine large post-1990 contractionary devaluations. A salient feature of the data is that inflation is low relative to the rate of devaluation. We argue that distribution costs and substitution away from imports to lower quality local goods can account quantitatively for the post-devaluation behaviour of prices.

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Year of publication:	2002-01
Authors:	Burstein, Ariel Tomas ; Eichenbaum, Martin ; Rebelo, Sérgio
Institutions:	C.E.P.R. Discussion Papers
Subject:	devaluation \| exchange rates \| inflation

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 3178
Classification:	F31 - Foreign Exchange
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005123785