Kiguel, 1989.
Why did the Austral plan fail to curb inflation on a sustained basis? Sophistication in the design of a stabilization program is no substitute for addressing fundamental imbalances, contends the author - and price controls, improperly used, can make the problem worse.
Papers
Kiguel & Neumeyer, 1989.
In Argentina, increases in inflation appear to be closely linked to government attempts to increase seigniorage (government revenues from issuing money). The implication? Any serious stabilization effort requires finding an alternative source of revenue to replace the...
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...
Kiguel & Liviatan, 1988.
Orthodox stabilization programs in Latin American countries have been notoriously unsuccessful in combating inflation, despite the imposition of stringent cuts in government deficits. In most cases inflation came down only slowly and temporarily, with concomitant...
Kiguel and O’Connell, 1995.
Dual exchange rates and black markets for foreign exchange are common in developing countries, and a body of evidence is beginning to emerge on the effects that such parallel foreign exchange systems have on macro-economic performance. This article presents a...
Kiguel and Neumeyer, 1995.
Very high inflations are usually explained by the need to raise revenue from money creation (that is, seigniorage) to finance the budget deficit. The literature on inflationary finance [as presented, for example, in Friedman (1971), Sargent and Wallace (1973) and Bruno...
Kiguel and Liviatan, 1992.
This article examines the effects of disinflation on economic activity in countries characterized by chronic inflation. Such countries have a long history of inflation at rates exceeding those in industrial countries as well as labor and capital markets that have...
Kiguel and Liviatan, 1992.
What advantages and disadvantages does the heterodox strategy offer to stabilization programs in countries with chronic high inflation? Heterodox stabilization programs, in our definition, are those that support orthodox policies - that is, tight fiscal policy and a...
Kiguel and Dauhajre, 1988.
Under a flexible exchange rate system, large fluctuations in the nominal and the real exchange rates seem to be the rule rather than the exception. The significant appreciation of the dollar during the early 1980's followed by its recent steep depreciation provides new...
Kiguel, 1989.
Large budget deficits financed by money creation are widely believed to be the primary force sustaining prolonged high inflation processes. The relationship appears to be closer for hyperinflationary episodes, which are usually associated with the presence of massive budget...