Devaluation Crises and the Macroeconomic Consequences of Postponed Adjustment in Developing Countries
This paper develops a small analytical model to explore the relationship between the dynamics of macroeconomic adjustment and the timing of the implementation of an adjustment program featuring a nominal devaluation. The effects of postponing adjustment depend on the source of the original shock. In the case of a fiscal expansion, postponement implies a larger eventual devaluation and greater deviations of macroeconomic variables from their steady-state values. For adverse terms of trade shocks, postponement does not affect the size of the eventual devaluation, but does magnify the degree of post-devaluation overshooting by key macroeconomic variables
Year of publication: |
1989
|
---|---|
Institutions: | International Monetary Fund ; International Monetary Fund (contributor) |
Publisher: |
Washington, D.C : International Monetary Fund |
Subject: | Entwicklungsländer | Developing countries | Wirkungsanalyse | Impact assessment | Wechselkurspolitik | Exchange rate policy | Wirtschaftliche Anpassung | Economic adjustment | Wirtschaftspolitik | Economic policy | Abwertung | Currency devaluation | Währungskrise | Currency crisis | Wirtschaftskrise | Economic crisis |
Saved in:
freely available
Extent: | Online-Ressource (38 p) |
---|---|
Series: | IMF working papers. - Washington, DC : IMF, ZDB-ID 2108494-4. |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper |
Language: | English |
ISBN: | 1-4519-2584-0 ; 978-1-4519-2584-5 |
Other identifiers: | 10.5089/9781451925845.001 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014396111
Saved in favorites
Similar items by subject
-
Edwards, Sebastian, (1989)
-
Edwards, Sebastian, (1989)
-
Edwards, Sebastian, (1989)
- More ...
Similar items by person