Policy Accommodation and Gradual Stabilizations

Jose De Gregorio

Journal of Money, Credit and Banking, 1995, vol. 27, issue 3, 727-41

Abstract: Gradual stabilizations are usually the result of policy accommodation that attempts to avoid the recessionary costs of a sharp reduction of inflation. This paper presents two models that are consistent with the fact that, despite their dislike of inflation, policymakers nevertheless most often choose to adopt accommodative policies and implement gradual stabilization programs. The models presented in this paper emphasize the role of backward-looking indexation and the existence of fixed costs associated with the implementation of a stabilization program. Copyright 1995 by Ohio State University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819950 ... 0.CO%3B2-L&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:27:y:1995:i:3:p:727-41

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().