Disinflation and interest-bearing money

• 成果类型: Article
• 署名作者: Calvo, GA; Vegh, CA
• 署名单位: University of California System; University of California Los Angeles
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.2307/2235200
• 发表日期: 1996
• 页码: 1546-1563
• 关键词: small open-economy; interest-rates; inflation; demand; DYNAMICS; prices

摘要

In high inflation countries, policymakers often end up paying interest an part of the money supply. Higher interest rates on money have been used as a disinflationary policy. This paper analyses the effectiveness of such a policy in the context of a closed-economy, staggered-prices model. Both a permanent and a temporary rise in the interest rate on money provoke an initial fall in inflation, at the expense of a recession. When the rise is temporary, however, the initial inflation slowdown is' eventually followed by an upsurge of inflation over the level prevailing before the policy was implemented.