TY  - JOUR
AU  - Bruno,Michael
AU  - Easterly,William
TI  - Inflation's Children: Tales of Crises that Beget Reforms
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5452
PY  - 1996
Y2  - February 1996
UR  - http://www.nber.org/papers/w5452
L1  - http://www.nber.org/papers/w5452.pdf
N1  - Author contact info:
Michael Bruno

William Easterly
New York University
Department of Economics
19 W. 4th Street, 6th floor
New York NY 10012
Tel: 212/992-8684
Fax: 212/995-4186
E-Mail: william.easterly@nyu.edu
AB  - Are broad reforms the children of high inflation?  Do growth recoveries follow?  We find that countries that had external debt crises with high inflation both reformed more and recovered better than countries that had external debt crises with low inflation. Countries with extremely high inflation also later wound up with lower inflation than countries that has moderately high inflation.  The low inflation debtor countries had more aid than the high inflation debtor countries, which may have created stronger incentives to reform in the high inflation countries.  Recent reforms look like they are the children of high inflation, even if further paternity tests are in order.
ER  -