negatively associated with inflation, large budget deficits, and distorted foreign exchange markets. Supplementary evidence … of these effects: inflation reduces growth by reducing investment and productivity growth; budget deficits also reduce … both capital accumulation and productivity growth. Examination of exceptional cases shows that while low inflation and …

Inflation persists at moderate rates of 15-30 percent in all the countries that successfully reduced triple digit … inflations in the 1980s. Several other countries, for example Colombia, have experienced moderate inflation for prolonged periods …. In this paper we first set out theories of persistent inflation, which can be classified into those emphasizing …

It is often argued that the most important costs of inflation can be substantially mitigated by indexing reforms. Yet … governments in moderate inflation countries have generally been very reluctant to promote institutional changes that would reduce … the costs of inflation. Capital income continues to be taxed on a nominal basis, indexed bonds are a rarity, typical …

A given amount of seigniorage revenue can be collected at either a high or a low rate of inflation. Thus there ray be … inflation equilibrium when, with the same fiscal policy, it could be at a lower inflation rate. We show that under rational … expectations the high inflation equilibrium is stable and the low inflation equilibrium unstable; under adaptive expectations or …

The rate of inflation in Israel increased from 8 percent in 1965 to 300-400 percent in the first half of 1984. The … liberalization of 1977 the economy appeared to move into a new era in which the inflation rate seemed capable only of rising. Our … and fiscal policies, the stabilizing forces in the economy are so weak that the inflation rate is in a meta …

Estimates of the cost of disinflation made before the recent reduction in the inflation rate varied widely. Estimates … reduction in the inflation rate. At one extreme it was argued thata resolute and credible monetary policy could reduce inflation …

Models of inflation and growth in the sixties emphasized the portfolio substitution mechanism by which higher inflation … to higher growth.The empirical evidence, however, is that growth and inflation are negatively correlated. Reasons for … this negative correlation are investigated, and then embodied in a simple monetary maximizing model. Higher inflation is …

Much of the opposition to indexation as a means of adapting to on going inflation arises from the view that indexation … association between indexation and inflation is in large part a consequence of the monetary and fiscal policies being followed by …

The organization of the paper is simple. We start by examining the real effects of anticipated inflation in an economy … that has fully adapted to inflation. In particular, in this economy: (i) public institutions are fully attuned to inflation … (or inflation proof), (ii) the same is true of private institutions, (iii) current and future inflation is fully reflected …