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Fiscal deficits, exchange rate crises and inflation (anglais)

Recent inflationary experience in countries like Israel, Argentina and Brazil cannot be explained using traditional views on the relation between macroeconomic policy and inflation. Keynesian views cannot explain the peculiar "plateau" character of inflation in those countries: inflation is often stable at a given rate for several years, suddenly jumps to a new plateau, stays there for some years, then jumps again and so on. This paper proposes an...
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