Investment in inflationary economies /
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Author / Creator: | Levy Yeyati, Eduardo, author. |
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Imprint: | [Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©1996. |
Description: | 1 online resource (iii, 27 pages) : illustrations |
Language: | English |
Series: | IMF working paper ; WP/96/105 IMF working paper ; WP/96/105. |
Subject: | |
Format: | E-Resource Book |
URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12497005 |
Other authors / contributors: | International Monetary Fund. Western Hemisphere Department, issuing body. |
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ISBN: | 1455210064 9781455210060 |
Notes: | Includes bibliographical references (pages 26-27). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record. |
Summary: | Annotation The paper presents a model of irreversible investment under uncertainty, where investment takes place whenever a threshold level of marginal returns is reached. the threshold depends positively on price volatility; a change from high to low inflation induces an upward capital stock adjustment. In economies that move in and out of temporary stabilizations, the observed effect is a negative inflation-investment correlation that replicates previous empirical findings, due to purely short-term dynamics. I study how this correlation is affected by the expected duration of each regime. Empirical evidence from ten inflationary economies confirms the predictions of the model. |
Other form: | Print version: Levy Yeyati, Eduardo. Investment in inflationary economies. [Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©1996 |
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