Interactions between Inflation and Trade-Regime Objectives in Stabilization Programs

65 Pages Posted: 28 May 2004 Last revised: 21 Apr 2021

See all articles by Anne O. Krueger

Anne O. Krueger

International Monetary Fund (IMF); Stanford University - Graduate School of Business; National Bureau of Economic Research (NBER)

Date Written: May 1980

Abstract

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.

Suggested Citation

Krueger, Anne O., Interactions between Inflation and Trade-Regime Objectives in Stabilization Programs (May 1980). NBER Working Paper No. w0475, Available at SSRN: https://ssrn.com/abstract=262697

Anne O. Krueger (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Stanford University - Graduate School of Business ( email )

579 Serra Mall
Stanford, CA 94305
United States
650-723-0188 (Phone)
650-723-8611 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
22
Abstract Views
771
PlumX Metrics