A terapia da recessão virtual
The lack of a secure signaling for the prices evolution in inflationary processes (both high and moderate) tends to make agents adoptindexation by pastinflation as the main compass for it. Stabilization is, in this context, the process of changing this pattern, making an anchor the only compass for...
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| Format: | Article |
| Language: | Portuguese |
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Universidade de São Paulo
1997-06-01
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| Series: | Economia Aplicada |
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| Online Access: | https://www.revistas.usp.br/ecoa/article/view/217638 |
| Summary: | The lack of a secure signaling for the prices evolution in inflationary processes (both high and moderate) tends to make agents adoptindexation by pastinflation as the main compass for it. Stabilization is, in this context, the process of changing this pattern, making an anchor the only compass for inflation expectation. During this transition there is, usually, a raise in uncertainty, related with the unknown of how other agents will behave and with changes in relative prices. This is the main reason for the usual costs in terms ofproduct and unemployment (but when previous scenery is very uncertain - as in many high inflations -, stabilization may bring immediately more predictability, leading to a boom). To deal with this, we suggest that the well known alternative of an income policy can be complemented by a new tool: the "amplified anchor" - that intends, through a virtual recession, to lower (or even avoid) the real one.
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| ISSN: | 1413-8050 1980-5330 |