Temporary exchange rate-based stabilization programs under asset market segmentation
| Data(s) |
22/12/2014
22/12/2014
09/09/2003
|
|---|---|
| Identificador | |
| Idioma(s) |
en_US |
| Publicador |
Fundação Getulio Vargas. Escola de Pós-graduação em Economia |
| Relação |
Seminários de Almoço da EPGE |
| Direitos |
Todo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveis. |
| Palavras-Chave | #Política econômica #Estabilização econômica |
| Tipo |
Working Paper |
| Resumo |
This paper analyses the welfare consequences of temporary exchange rate-based stabilization programs. Differently than previous papers, however, here we assume that only a fraction of households participates in asset market transactions. With this asset market segmentation assumption, the effects of temporary programs on welfare may change drastically. Households with access to the bonds market are able to protect themselves better from the changes in the inflation rate – although at the cost of a distortion in their consumption path. As a consequence, they may decrease their inflation tax burden – which would increase for the other group of households. By the other side, when these agents that lack the access to the asset markets are credit constrained, they may welcome the program, since the government Is temporally reducing the inflation tax they have to pay. The temporary program could end up benefiting both groups, what could help to understand their popularity. |
