Consider a country that has experienced a hyperinflation. In general, countries with higher inflation rates tend to

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Consider a country that has experienced a hyperinflation. In general, countries with higher inflation rates tend to have less stable inflation rates, making the inflation rate difficult to forecast. If this country wants to reduce its inflation rate, state which of the following monetary regimes is least likely to succeed: exchange rate target, money supply target, nominal interest rate policy. Which approach is most likely to succeed? Explain.

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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