Stabilization In Underdeveloped Economies: A Fix-Price Approach

Date

1988

Author

Somel, Cem

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

67
views

57
downloads

Cite This

A fix-price model is presented wherein the represeniative firm's productive capacity is botınded and the firm is dependenl on bank credit for working capital. From the model we deri ve (burquantity- constrained temporary equilibria: Keynesian Uncmployment. Repressed Structural Inflation, Cost vStagflation and Financial Stagflation, each with a distinct causal structure. The model demonstrates possible stagflationary effects of low and high interest rate policies. and counters the view that raising interest rates is in itself a policy that will always attenııate inflationary pressures.

URI

https://hdl.handle.net/11511/110531

Collections

Department of Economics, Article