Is inflation effective for liquidating short-term nominal debt? /

Is inflation effective for liquidating short-term nominal debt? /

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Bibliographic Details
Author / Creator:	Calvo, Guillermo A., author.
Imprint:	[Washington, D.C.] : International Monetary Fund, Research Dept., 1989.
Description:	1 online resource (iii, 10 pages) : illustrations.
Language:	English
Series:	IMF working paper ; WP/89/2 IMF working paper ; WP/89/2.
Subject:	Debt relief -- Mathematical models. Inflation (Finance) Currency question. Debt. Finance, Public. Inflation, Economic Debt relief -- Mathematical models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/13510775

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund, issuing body.
ISBN:	1455296740 9781455296743
Notes:	"January 3, 1989." Includes bibliographical references (page 10). Print version record.
Summary:	The possibility of reducing the real value of domestic non-indexed government debt through inflation is studied. A central result is that this kind of debt liquidation is possible even though prices are sticky and government bonds are short term. A policy implication is that short bond maturities are no safeguard against surprise devaluations intended to lower the burden of the debt. If devaluation incentives are present, it is further argued that nominal non-indexed bonds could give rise to situations where devaluations are a consequence of self-fulfilling expectations cycles.
Other form:	Print version: Calvo, Guillermo A. Is inflation effective for liquidating short-term nominal debt?. [Washington, D.C.] : International Monetary Fund, Research Dept., 1989

Description
Summary:	The possibility of reducing the real value of domestic non-indexed government debt through inflation is studied. A central result is that this kind of debt liquidation is possible even though prices are sticky and government bonds are short term. A policy implication is that short bond maturities are no safeguard against surprise devaluations intended to lower the burden of the debt. If devaluation incentives are present, it is further argued that nominal non-indexed bonds could give rise to situations where devaluations are a consequence of self-fulfilling expectations cycles. Any views expressed in the Departmental Memoranda (DM) Series represent the opinions of the authors and, unless otherwise indicated, should not be interpreted as official Fund views.
Item Description:	"January 3, 1989."
Physical Description:	1 online resource (iii, 10 pages) : illustrations.
Bibliography:	Includes bibliographical references (page 10).
ISBN:	1455296740 9781455296743