The government's main concern is clearly the value of the market dollar; the informal, the MEP and BCS. Beyond the monetary illusion that invades society and that makes possible headlines such as "...
Inflationary Rigidities and Stabilization Policies
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Inflationary Rigidities and Stabilization Policies
Kiguel & Liviatan, 1998.
A tight fiscal stance can stop episodes of hyperinflation. But it cannot, on its own, overcome the inertia of rising prices in countries suffering chronic inflation. Such countries can nevertheless strengthen their stabilization efforts by anchoring nominal prices to the money supply or the exchange rate.
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