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The Old and the New in Heterodox Stabilization Programs
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The Old and the New in Heterodox Stabilization Programs
Kiguel & Liviatan, 1989.
Heterodox stabilization programs can bring down inflation quickly without costing much unemployment in the short run. But costs that appear up front in orthodox programs are delayed in heterodox programs. Tight fiscal policy and a strong nominal anchor are critical to their success in the long run.
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