Tag Archive: disinflation

How do we tackle inflation with limited credibility? Don’t ignore the intermediate targets

How do we tackle inflation with limited credibility?

Mridula Duggal and Luis E. Rojas develop a theoretical framework on the success of Chile and Colombia during their battle against high inflation in the 1990s. Their research provides valuable insights into how central banks with limited credibility and independent monetary policy can manage the tradeoff between low inflation and associated output losses. 

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