The Vulnerability of Inflation Stabilization to External Shocks: A Case Study of Bolivia
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Palgrave Macmillan
Abstract
Numerous inflation stabilization programmes are based on exchange-rate stabilization. Under most circumstances the stock of net foreign reserves (NFR) plays a crucial role in the credibility and success of exchange-rate stabilization, as has been stressed by Dornbusch (1991). A rapid depletion of NFR caused by an exogenous shock may severely imperil an otherwise well-designed programme.
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Citaciones: 3