WorldCat Identities

Végh Gramont, Carlos A. 1958-

Overview
Works: 68 works in 396 publications in 2 languages and 3,539 library holdings
Genres: History 
Roles: Editor
Classifications: HG230.3, 332.042
Publication Timeline
Key
Publications about  Carlos A Végh Gramont Publications about Carlos A Végh Gramont
Publications by  Carlos A Végh Gramont Publications by Carlos A Végh Gramont
Most widely held works by Carlos A Végh Gramont
Money, crises, and transition essays in honor of Guillermo A. Calvo ( )
12 editions published in 2008 in English and held by 1,240 WorldCat member libraries worldwide
Essays by prominent scholars and policymakers honor one of the most influential macroeconomists of the last thirty years discussing the themes behind his work
Open economy macroeconomics in developing countries by Carlos A Végh Gramont ( )
7 editions published in 2013 in English and held by 239 WorldCat member libraries worldwide
Preface -- Introduction -- The basic intertemporal model -- Capital markets imperfections -- Intertemporal prices -- Non-tradable goods and relative prices -- The basic monetary model -- The monetary approach to the balance of payments -- Temporary policy -- Sticky prices -- Interest rate policy -- Optimal fiscal and monetary policy in the open economy -- Optimal exchange rate regimes -- Real anchors -- Stopping high inflation -- Capital inflows -- Dollarization -- Balance of payment crises -- Financial crises
Como armar el rompecabezas fiscal? : nuevos indicadores de sostenibilibad by Banco Interamericano de Desarrollo (Washington) ( Book )
6 editions published in 2000 in Spanish and English and held by 104 WorldCat member libraries worldwide
Modern hyper- and high inflations by Stanley Fischer ( Book )
17 editions published between 2002 and 2003 in English and held by 102 WorldCat member libraries worldwide
Abstract: Since 1947, hyperinflations (by Cagan's definition) in market economies have been rare. Much more common have been longer inflationary processes with inflation rates above 100 percent per annum. Based on a sample of 133 countries, and using the 100 percent threshold as the basis for a definition of very high inflation episodes, this paper examines the main characteristics of such inflations. Among other things, we find that (i) close to 20 percent of countries have experienced inflation above 100 percent per annum; (ii) higher inflation tends to be more unstable; (iii) in high inflation countries, the relationship between the fiscal balance and seigniorage is strong both in the short and long-run; (iv) inflation inertia decreases as average inflation rises; (v) high inflation is associated with poor macroeconomic performance; and (vi) stabilizations from high inflation that rely on the exchange rate as the nominal anchor are expansionary
Real effects of exchange-rate based stabilization : an analysis of competing theories by Sergio Rebelo ( Book )
20 editions published in 1995 in English and held by 93 WorldCat member libraries worldwide
Abstract: This paper uses a unified analytical framework to assess, both qualitatively and quantitatively, the relevance of the different hypotheses that have been proposed to explain the real effects of exchange rate-based stabilizations. The four major hypotheses analyzed are: (i) the supply-side effects associated with an inflation decline; (ii) the perception that the exchange rate peg is temporary; (iii) the fiscal adjustments that tend to accompany the peg; and (iv) the existence of nominal rigidities in wages or prices
Banks and macroeconomic disturbances under predetermined exchange rates by Sebastian Edwards ( Book )
12 editions published in 1997 in English and held by 90 WorldCat member libraries worldwide
As the recent Mexican crisis vividly illustrates, Latin American countries often go through boom-bust cycles caused by both domestic policies and external shocks. Such cycles are typically magnified by weak banking systems which intermediate large capital inflows. This paper develops a simple optimizing model to analyze how the banking sector affects the propagation of shocks. In particular, we show how the world business cycle and shocks to the banking system affect output and employment through fluctuations in bank credit. We also analyze the countercyclical use of reserve requirements. Econometric evidence for Chile and Mexico supports the main predictions of the model
Inflation stabilization and BOP crises in developing countries by Guillermo A Calvo ( Book )
14 editions published between 1998 and 1999 in English and held by 87 WorldCat member libraries worldwide
Abstract: 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
What if Alexander Hamilton had been Argentinean? : a comparison of the early monetary experiences of Argentina and the United States by Michael D Bordo ( Book )
11 editions published between 1998 and 1999 in English and held by 86 WorldCat member libraries worldwide
Abstract: The contrast between the early nineteenth century Argentinean experience of high inflation and the American experience of low inflation is interpreted in terms of a dynamic monetary model of optimal taxation. It is argued that the two countries' experiences diverged because of the different constraints they faced in financing wartime government expenditures. In the presence of frequent wars, ever-tightening access to foreign capital, and an inadequate tax base, Argentina's use of the inflation tax may be viewed as an optimal solution to its wartime problems. By contrast, with the exception of the Revolutionary War, the absence of such constraints in the United States required full-tax smoothing, with only a temporary use of the inflation tax during wartime. Such policies were embodied in Alexander Hamilton's fiscal package of 1790, which allowed the United States to bond-finance most subsequent wartime expenditures
Tax base variability and procyclical fiscal policy by Ernesto Talvi ( Book )
12 editions published between 1999 and 2000 in English and held by 81 WorldCat member libraries worldwide
Abstract: Based on a sample of 56 countries, we find that while fiscal policy in the G-7 countries appears to be broadly consistent with Barro's tax smoothing proposition, in developing countries government spending and taxes are highly procyclical (i.e., government spending rises and taxes fall during expansions, while the reverse is true in recessions). To explain this puzzle, we develop an optimal fiscal policy model in which running budget surpluses is costly because they create pressures to increase public spending. Given this distortion, a government that faces large (and perfectly anticipated) fluctuations in the tax base will find it optimal to run a procyclical fiscal policy. We argue that the differences in fiscal policy between the G-7 countries and developing countries can be traced back to the fact that the tax base is much more volatile in developing countries than in the G-7 countries
Monetary policy, interest rate rules, and inflation targeting : some basic equivalences by Carlos A Végh Gramont ( Book )
12 editions published between 1998 and 2001 in English and held by 80 WorldCat member libraries worldwide
Abstract: Policymakers increasingly view short-term nominal interest rates as the main instrument of monetary policy, often in conjunction with some inflation target. Interest rates on short-term indexed government debt (i.e., a real interest rate) have also been used as policy instruments. To understand the pros and cons of different policy rules and instruments, this paper derives some basic equivalences among different policy rules. It is shown that, under certain conditions, the following three rules are exactly equivalent: (i) a 'k-percent' money growth rule; (ii) a nominal interest rate rule combined with an inflation target; and (iii) a real interest rate rule combined with an inflation target. These policy rules, however, become increasingly complex: the first rule requires no feedback mechanism; the second rule requires responding to the inflation gap; while the third rule involves responding to both the inflation gap and the output gap. It is also shown that policy rules which respond to the output gap may avoid a deflationary adjustment
Living with the fear of floating : an optimal policy perspective by Amartya Lahiri ( Book )
12 editions published in 2001 in English and held by 77 WorldCat member libraries worldwide
Abstract: As documented in recent studies, developing countries (classified by the IMF as floaters or managed floaters) are extremely reluctant to allow for large nominal exchange rate fluctuations. This 'fear of floating' is reflected in the fact that, in spite of being subject to larger shocks, developing countries exhibit lower exchange rate variability and higher reserve variability than developed countries. Moreover, there is a positive correlation between changes in the exchange rate and interest rates and a negative correlation between both changes in reserves and the exchange rate and changes in interest rates and reserves. We build a simple model that rationalizes these key features as the outcome of an optimal policy response to monetary shocks. The model incorporates three key frictions: an output cost of nominal exchange rate fluctuations, an output cost of higher interest rates to defend the currency, and a fixed cost of intervention
Delaying the inevitable : optimal interest rate policy and BOP crises by Amartya Lahiri ( Book )
13 editions published in 2000 in English and held by 77 WorldCat member libraries worldwide
Abstract: The classical model of balance of payments crises implicitly assumes that the central bank sits passively as international reserves dwindle. In practice, however, central banks typically defend pegs aggressively by raising short-term interest rates. This paper analyzes the feasibility and optimality of raising interest rates to delay a potential BOP crisis. Interest rate policy works through two distinct channels. By raising demand for domestic, interest-bearing liquid assets, higher interest rates tend to delay the crisis. Higher interest rates, however, increase public debt service and imply higher future inflation, which tends to bring forward the crisis. We show that, under certain conditions, it is feasible to delay the crisis, but raising interest rates beyond a certain point may actually hasten the crisis. A similar non-monotonic relationship emerges between welfare and the increase in interest rates. It is thus optimal to engage in some active interest rate defense but only up to a certain point. In fact, there is a whole range of interest rate increases for which it is feasible to delay the crisis but not optimal to do so
The unholy trinity of financial contagion by Graciela Laura Kaminsky ( Book )
9 editions published in 2003 in English and held by 67 WorldCat member libraries worldwide
"Over the last 20 years, some financial events, such as devaluations or defaults, have triggered an immediate adverse chain reaction in other countries -- which we call fast and furious contagion. Yet, on other occasions, similar events have failed to trigger any immediate international reaction. We argue that fast and furious contagion episodes are characterized by "the unholy trinity": (i) they follow a large surge in capital flows; (ii) they come as a surprise; and (iii) they involve a leveraged common creditor. In contrast, when similar events have elicited little international reaction, they were widely anticipated and took place at a time when capital flows had already subsided"--NBER website
When it rains, it pours : procyclical capital flows and macroeconomic policies by Graciela Laura Kaminsky ( Book )
8 editions published in 2004 in English and held by 66 WorldCat member libraries worldwide
"Based on a sample of 104 countries, we document four key stylized facts regarding the interaction between capital flows, fiscal policy, and monetary policy. First, net capital inflows are procyclical (i.e., external borrowing increases in good times and falls in bad times) in most OECD and developing countries. Second, fiscal policy is procyclical (i.e., government spending increases in good times and falls in bad times) for the majority of developing countries. Third, for emerging markets, monetary policy appears to be procyclical (i.e., policy rates are lowered in good times and raised in bad times). Fourth, in developing countries - and particularly for emerging markets - periods of capital inflows are associated with expansionary macroeconomic policies and periods of capital outflows with contractionary macroeconomic policies. In such countries, therefore, when it rains, it does indeed pour"--National Bureau of Economic Research web site
How big (small?) are fiscal multipliers? by Ethan Ilzetzki ( )
11 editions published between 2010 and 2011 in English and held by 61 WorldCat member libraries worldwide
We contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset of government expenditure in 44 countries, we find that (i) the output effect of an increase in government consumption is larger in industrial than in developing countries, (ii) the fiscal multiplier is relatively large in economies operating under predetermined exchange rate but zero in economies operating under flexible exchange rates; (iii) fiscal multipliers in open economies are lower than in closed economies and (iv) fiscal multipliers in high-debt countries are also zero
Output costs, currency crises, and interest rate defense of a peg by Amartya Lahiri ( )
8 editions published in 2005 in English and held by 59 WorldCat member libraries worldwide
"Central banks typically raise short-term interest rates to defend currency pegs. Higher interest rates, however, often lead to a credit crunch and an output contraction. We model this trade-off in an optimizing, first-generation model in which the crisis may be delayed but is ultimately inevitable. We show that higher interest rates may delay the crisis, but raising interest rates beyond a certain point may actually bring forward the crisis due to the large negative output effect. The optimal interest rate defense involves setting high interest rates (relative to the no defense case) both before and at the moment of the crisis. Furthermore, while the crisis could be delayed even further, it is not optimal to do so"--National Bureau of Economic Research web site
When is it optimal to abandon a fixed exchange rate? by Sergio Rebelo ( )
7 editions published in 2006 in English and held by 48 WorldCat member libraries worldwide
The influential Krugman-Flood-Garber (KFG) model of balance of payment crises assumes that a fixed exchange rate is abandoned if and only if international reserves reach a critical threshold value. From a positive standpoint, the KFG rule is at odds with many episodes in which the central bank has plenty of international reserves at the time of abandonment. We study the optimal exit policy and show that, from a normative standpoint, the KFG rule is generally suboptimal. We consider a model in which the fixed exchange rate regime has become unsustainable due to an unexpected increase in government spending. We show that, when there are no exit costs, it is optimal to abandon immediately. When there are exit costs, the optimal abandonment time is a decreasing function of the size of the fiscal shock. For large fiscal shocks, immediate abandonment is optimal. Our model is consistent with evidence suggesting that many countries exit fixed exchange rate regimes with still plenty of international reserves in the central bank's vault
Segmented asset markets and optimal exchange rate regimes by Amartya Lahiri ( )
8 editions published in 2007 in English and held by 46 WorldCat member libraries worldwide
This paper revisits the issue of the optimal exchange rate regime in a flexible price environment. The key innovation is that we analyze this question in the context of environments where only a fraction of agents participate in asset market transactions (i.e., asset markets are segmented). Under this friction, alternative exchange rate regimes have different implications for real allocations in the economy. In particular -- and contrary to standard results under sticky prices -- we show that flexible exchange rates are optimal under monetary shocks and fixed exchange rates are optimal under real shocks
Optimal exchange rate regimes turning Mundell-Fleming's dictum on its head by Amartya Lahiri ( )
7 editions published in 2006 in English and held by 46 WorldCat member libraries worldwide
A famous dictum in open economy macroeconomics -- which obtains in the Mundell-Fleming world of sticky prices and perfect capital mobility -- holds that the choice of the optimal exchange rate regime should depend on the type of shock hitting the economy. If shocks are predominantly real, a flexible exchange rate is optimal, whereas if shocks are mainly monetary, a fixed exchange rate is optimal. There is no obvious reason, however, why this paradigm should be the most appropriate one to think about this important issue. Arguably, asset market frictions may be as pervasive as goods market frictions (particularly in developing countries). In this light, we show that in a model with flexible prices and asset market frictions, the Mundell-Fleming dictum is turned on its head: flexible rates are optimal in the presence of monetary shocks, whereas fixed rates are optimal in response to real shocks. We thus conclude that the choice of an optimal exchange rate regime should depend not only on the type of shock (real versus monetary) but also on the type of friction (goods versus asset market)
Procyclical fiscal policy in developing countries truth or fiction? by Ethan Ilzetzki ( )
7 editions published in 2008 in English and held by 42 WorldCat member libraries worldwide
A large empirical literature has found that fiscal policy in developing countries is procyclical, in contrast to high-income countries where it is countercyclical. The idea that fiscal policy in developing countries is procyclical has all but reached the status of conventional wisdom. This has sparked a growing theoretical literature that attempts to explain such a puzzle. Some authors, however, have suggested that procyclical fiscal policy could be more fiction than truth since, by and large, the current literature has ignored endogeneity problems and may have simply misidentified a standard expansionary effect of fiscal policy. To settle this issue of causality, we build a novel quarterly dataset for 49 countries covering the period 1960-2006, and subject the data to a battery of econometric tests: instrumental variables, simultaneous equations, and time-series methods. We find overwhelming evidence to support the idea that procyclical fiscal policy in developing countries is in fact truth and not fiction. We also find evidence that fiscal policy is expansionary -- a channel disregarded by the existing literature -- lending empirical support to the notion that when "it rains, it pours."
 
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Alternative Names
Gramont, Carlos A. Végh.
Gramont Carlos A. Végh 1958-....
Végh, C. A. 1958-
Végh, Carlos.
Végh, Carlos 1958-
Végh, Carlos A.
Végh, Carlos A. 1958-
Végh Gramont, Carlos A.
Végh-Gramont, Carlos A. 1958-
Languages
English (208)
Spanish (5)
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