Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?

Autores
Arnoletto, Matías; Davi, Mariano; Zaratiegui, Emilio
Año de publicación
2018
Idioma
inglés
Tipo de recurso
documento de conferencia
Estado
versión publicada
Descripción
We look to determine when interest rate-based stabilization plans should be gradual. We use a standard open economy DSGE model and consider three extensions that focus on the labor market. We find that gradualism is advised when sticky wages adjusted to past inflation generate inflationary inertia and the policymaker is credible. On the contrary, when the policy-maker is not credible, a shock plan is more successful in lowering inflation. We contribute to the literature on stabilization plans that has mostly focused on exchange rate-based (ERBS) plans by extending the analysis to interest rate-based stabilization plans.
Facultad de Ciencias Económicas
Materia
Ciencias Económicas
inflation
stabilization
interest rates
small open economy
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by-nc-sa/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/165492
Acceder
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spelling Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?Arnoletto, MatíasDavi, MarianoZaratiegui, EmilioCiencias Económicasinflationstabilizationinterest ratessmall open economyWe look to determine when interest rate-based stabilization plans should be gradual. We use a standard open economy DSGE model and consider three extensions that focus on the labor market. We find that gradualism is advised when sticky wages adjusted to past inflation generate inflationary inertia and the policymaker is credible. On the contrary, when the policy-maker is not credible, a shock plan is more successful in lowering inflation. We contribute to the literature on stabilization plans that has mostly focused on exchange rate-based (ERBS) plans by extending the analysis to interest rate-based stabilization plans.Facultad de Ciencias Económicas2018-11info:eu-repo/semantics/conferenceObjectinfo:eu-repo/semantics/publishedVersionObjeto de conferenciahttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/165492enginfo:eu-repo/semantics/altIdentifier/isbn/978-987-28590-6-0info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2018/zaratiegui.pdfinfo:eu-repo/semantics/altIdentifier/issn/1852-0022info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-sa/4.0/Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:43:26Zoai:sedici.unlp.edu.ar:10915/165492Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:43:27.146SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
title Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
spellingShingle Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
Arnoletto, Matías
Ciencias Económicas
inflation
stabilization
interest rates
small open economy
title_short Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
title_full Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
title_fullStr Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
title_full_unstemmed Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
title_sort Go Slow to Go Far: When Should Inflation Stabilization Plans be Gradual?
dc.creator.none.fl_str_mv Arnoletto, Matías
Davi, Mariano
Zaratiegui, Emilio
author Arnoletto, Matías
author_facet Arnoletto, Matías
Davi, Mariano
Zaratiegui, Emilio
author_role author
author2 Davi, Mariano
Zaratiegui, Emilio
author2_role author
author
dc.subject.none.fl_str_mv Ciencias Económicas
inflation
stabilization
interest rates
small open economy
topic Ciencias Económicas
inflation
stabilization
interest rates
small open economy
dc.description.none.fl_txt_mv We look to determine when interest rate-based stabilization plans should be gradual. We use a standard open economy DSGE model and consider three extensions that focus on the labor market. We find that gradualism is advised when sticky wages adjusted to past inflation generate inflationary inertia and the policymaker is credible. On the contrary, when the policy-maker is not credible, a shock plan is more successful in lowering inflation. We contribute to the literature on stabilization plans that has mostly focused on exchange rate-based (ERBS) plans by extending the analysis to interest rate-based stabilization plans.
Facultad de Ciencias Económicas
description We look to determine when interest rate-based stabilization plans should be gradual. We use a standard open economy DSGE model and consider three extensions that focus on the labor market. We find that gradualism is advised when sticky wages adjusted to past inflation generate inflationary inertia and the policymaker is credible. On the contrary, when the policy-maker is not credible, a shock plan is more successful in lowering inflation. We contribute to the literature on stabilization plans that has mostly focused on exchange rate-based (ERBS) plans by extending the analysis to interest rate-based stabilization plans.
publishDate 2018
dc.date.none.fl_str_mv 2018-11
dc.type.none.fl_str_mv info:eu-repo/semantics/conferenceObject
info:eu-repo/semantics/publishedVersion
Objeto de conferencia
http://purl.org/coar/resource_type/c_5794
info:ar-repo/semantics/documentoDeConferencia
format conferenceObject
status_str publishedVersion
dc.identifier.none.fl_str_mv http://sedici.unlp.edu.ar/handle/10915/165492
url http://sedici.unlp.edu.ar/handle/10915/165492
dc.language.none.fl_str_mv eng
language eng
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info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2018/zaratiegui.pdf
info:eu-repo/semantics/altIdentifier/issn/1852-0022
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
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Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-sa/4.0/
Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)
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dc.source.none.fl_str_mv reponame:SEDICI (UNLP)
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repository.name.fl_str_mv SEDICI (UNLP) - Universidad Nacional de La Plata
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