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|Title:||Hyperinflation and stabilization: The case of Bolivia (1984-1986)|
|Author(s):||Breuer, Luis E.|
|Doctoral Committee Chair(s):||Baer, Werner W.|
|Department / Program:||Economics|
|Degree Granting Institution:||University of Illinois at Urbana-Champaign|
|Abstract:||The Bolivian hyperinflation of 1984-1985 stands out as one of the most dramatic inflation phenomena in world history. In the 12-month period preceding August 1985, the price level increased by more than 20,000 percent.
This dissertation examines the Bolivian hyperinflation and stabilization processes in the period between 1984 and 1986. Before turning to Bolivia, however, four European hyperinflations of the 1920s are examined with the aim of establishing a benchmark against which the Bolivian experience in compared. The main events that contributed to the extreme price increases were the country's cutoff from international capital markets in the early 1980s and the policymakers' inability to adjust to the new economic environment. The latter led to sharp reductions in tax receipts to the point where the government was financing most of its expenditures with money creation.
Stabilization policy included orthodox contractionary monetary and fiscal policies, in sharp contrast to the recent and unsuccessful stabilization attempts in Argentina (Plan Austral) and Brazil (Plano Cruzado). Both challenges to the implementation of the stabilization program and the winners and losers of the latter are identified.
The concluding chapter compares the Bolivian experience with four hyperinflations in Europe during the 1920s extracting lessons from the former.
|Rights Information:||Copyright 1989 Breuer, Luis E.|
|Date Available in IDEALS:||2011-05-07|
|Identifier in Online Catalog:||AAI8924776|
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