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Conflict Inflation and Currency Depreciation in Latin America

In: Distributional Conflict and Inflation

Author

Listed:
  • Richard C. K. Burdekin

    (Claremont McKenna College)

  • Paul Burkett

    (Indiana State University)

Abstract

The German stabilization at the end of 1923 was accompanied by a currency reform and return to a gold-based fixed exchange rate system. Similar measures were taken at the end of other post-World War I hyperinflations in Europe (Sargent, 1993, Chapter 3). The initial success of these policies in ending the vicious circle of wage-push and currency depreciation may make one wonder why a similar remedy was not long ago applied to end the prolonged cycles of currency depreciation in Latin America. In this chapter, we review some of the major recent Latin American stabilization attempts, beginning with the exchange-rate-based Tablita’ programs of the 1970s.

Suggested Citation

  • Richard C. K. Burdekin & Paul Burkett, 1996. "Conflict Inflation and Currency Depreciation in Latin America," Palgrave Macmillan Books, in: Distributional Conflict and Inflation, chapter 9, pages 175-201, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-37173-6_10
    DOI: 10.1057/9780230371736_10
    as

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