TY  - JOUR
AU  - Burstein,Ariel
AU  - Eichenbaum,Martin
AU  - Rebelo,Sergio
TI  - Why Are Rates of Inflation So Low After Large Devaluations?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8748
PY  - 2002
Y2  - January 2002
UR  - http://www.nber.org/papers/w8748
L1  - http://www.nber.org/papers/w8748.pdf
N1  - Author contact info:
Ariel Burstein
Department of Economics
Bunche Hall 8365
Box 951477
UCLA
Los Angeles, CA 90095-1477
Tel: 310/206-6732
Fax: 310/825-9528
E-Mail: arielb@econ.ucla.edu

Martin S. Eichenbaum
Department of Economics
Northwestern University
2003 Sheridan Road
Evanston, IL  60208
Tel: 847/491-8232
Fax: 847/491-7001
E-Mail: eich@northwestern.edu

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu
AB  - This paper studies the behavior of inflation after nine large post-1990 contractionary devaluations. A salient feature of the data is that inflation is low relative to the rate of devaluation. We argue that distribution costs and substitution away from imports to lower quality local goods can account quantitatively for the post-devaluation behavior of prices.
ER  -