Why Are Rates of Inflation So Low After Large Devaluations?

Ariel Burstein, Martin Eichenbaum and Sergio Rebelo ()

No 8748, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies the behavior of inflation after nine large post-1990 contractionary devaluations. A salient feature of the data is that inflation is low relative to the rate of devaluation. We argue that distribution costs and substitution away from imports to lower quality local goods can account quantitatively for the post-devaluation behavior of prices.

JEL-codes: F31 (search for similar items in EconPapers)
Date: 2002-01
New Economics Papers: this item is included in nep-mon
Note: EFG IFM ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (106)

Downloads: (external link)
http://www.nber.org/papers/w8748.pdf (application/pdf)

Related works:
Working Paper: Why Are Rates of Inflation So Low After large Devaluations (2002)
Working Paper: Why Are Rates of Inflation So Low After Large Devaluations? (2002)
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:nbr:nberwo:8748

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8748

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().