TY  - JOUR
AU  - Calvo,Guillermo A.
AU  - Vegh,Carlos A.
TI  - Inflation Stabilization and BOP Crises in Developing Countries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6925
PY  - 1999
Y2  - February 1999
UR  - http://www.nber.org/papers/w6925
L1  - http://www.nber.org/papers/w6925.pdf
N1  - Author contact info:
Guillermo A. Calvo
Columbia University
School of International and Public Affairs
420 West 118th St, Room 1303B
MC3332
New York, NY 10027
Tel: 212/854-4264
E-Mail: gc2286@columbia.edu

Carlos A. Vegh
Department of Economics
Tydings Hall, Office 4118G
University of Maryland
College Park, MD 20742-7211
Tel: 301-405-3546
Fax: 301-405-3542
E-Mail: vegh@econ.bsos.umd.edu
AB  - High and persistent inflation has been one of the distinguishing macroeconomic characteristics of many developing countries since the end of World War II.  Countries afflicted by chronic inflation, however, have not taken their fate lightly and have engaged in repeated stabilization attempts.  More often than not, stabilization plans have failed.  The end of stabilizations -- particularly those which rely on a pegged exchange rate -- has often involved dramatic balance of payment crises.  As stabilization plans come and go, a large literature has developed trying to document the main empirical regularities and understand the key issues involved.  This paper undertakes a critical review and evaluation of the literature related to inflation stabilization policies and balance of payment crises in developing countries.
ER  -