Suriname: A Case Study of High Inflation

Sukhdev Shah and Benedikt Braumann

No 1999/157, IMF Working Papers from International Monetary Fund

Abstract: Suriname recently went through a period of destabilizationthat that bordered on hyperinflation. The country’s experience provides a good illustration to study the genesis and dynamics of high inflation and includes some unusual phenomena, such as a monetary overhang, an eight-tiered exchange rate, and inflationary gold purchases by the central bank. High inflation also had a significant impact on the real economy. This paper compares the experience of Suriname with other countries discussed in the recent stabilization literature. It finds strong evidence of intertemporal demand effects, which occurred as the public reacted to the temporary bout of high inflation.

Keywords: WP; exchange rate; price level; budget deficit; inflationary spiral; Inflation; monetary overhang; multiple exchange rates; non-neutralities; inflation act; Phillips curve; inflation period; excess supply; inflation rate; inflation result; Consumption; Real exchange rates; Government debt management; Real wages; Eastern Europe; Caribbean (search for similar items in EconPapers)
Pages: 24
Date: 1999-11-01
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Citations: View citations in EconPapers (2)

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