What people are saying - Write a review
We haven't found any reviews in the usual places.
The Analytical Framework
Credible Stabilization and Interest Rates
Other editions - View all
after-tax interest rate after-tax real interest announcement based stabilization programs behavior of real Calvo and Végh central bank condition 30 dc dc degree of capital denotes devaluation rate domestic interest rate domestic money economy equations 18 equations 23 equilibrium exchange rate adjustment exchange-rate based stabilization exp(vT fall on impact Figure fiscal policy foreign assets foreign bonds given gross consumption holdings of foreign impact effect imperfect capital mobility inception income tax rate initial exchange rate initial steady-state interest rate falls interest rate rises lump-sum taxes marginal utility marginal value mobility is sufficiently movement in real nominal interest rate opportunity cost permanent reduction policy shock policymakers private holdings private wealth rates in exchange-rate real after-tax interest real interest rates real money balances real money stock rise on impact seignorage short-run dynamics steady-state value stock of foreign transactions costs utility of wealth value of wealth wealth rises