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The Genesis of Inflation and the Costs of Disinflation

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  • Ball, Laurence

Abstract

This essay asks how high inflation arises and why it is costly to eliminate. Specifically, the paper discusses the roles of price rigidity and credibility problems in explaining the costs of disinflation; the puzzle of persistent inflation triggered by onetime macroeconomic shocks; and the case for returning to adaptive expectations in theories of inflation.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

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  • Ball, Laurence, 1991. "The Genesis of Inflation and the Costs of Disinflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(3), pages 439-452, August.
    • Handle: RePEc:mcb:jmoncb:v:23:y:1991:i:3:p:439-52
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