Papers

Kiguel & Liviatan, 1995. The recent hyperinflations in Argentina, Brazil, and Peru defy much of the widely accepted views regarding the origins and ends of hyperinflations. These “classical” views essentially state that hyperinflations have clear causes, exceptionally large budget deficits...
Kiguel, 1994. Exchange rate policy is usually driven by two different, and many times conflicting objectives.
Kiguel & Liviatan, 1994. An exchange rate based stabilization is one designed to reduce inflation by using the exchange rate as the main nominal anchor. This does not mean necessarily a fixed exchange rate. A crawling peg with a low rate of depreciation or a preannounced gradual reduction in...
Bouton, Jones & Kiguel, 1994. Many African countries initiated reform programs in the mid 1980s to remedy their severe balance of payments problems and reverse their economic decline. 
Kiguel & Nita Ghei, 1993. We live in a period characterized by devaluation pessimism. As the world became more tolerant of inflation, following the collapse of the Bretton Woods era, inflation rates have been higher, and maxi-devaluations have been more frequently eroded by increases in...
Ades, Kiguel & Liviatan, 1993. In high inflation economies exchange-rate-based stabilizations typically start with a boom, with the recession coming later. In contrast, in similar programs in the moderate inflation European economies, the recession generally appears upfront. When such programs...
Cukierman, Kiguel & Liviatan, 1992. The cost of reneging is a key reason policymakers hold back from strong commitments in their exchange rate policy. The stronger the commitment to an exchange rate rule, the more costly it is to deviate from it.
Kiguel & Liviatan, 1991. Heterodox stabilization programs are more successful in chronic high inflation countries because only there can the benefits from achieving a rapid initial reduction in inflation outweigh the costs of tampering with price and wage controls. While the heterodox phase is...
Kiguel & Liviatan, 1990. The repeated use of price and wage controls is likely to destabilize inflation in the medium run. The similar cyclical pattern of inflation observed in the aftermath of the failures of the Austral plan in Argentina and the Cruzado plan in Brazil is mostly linked to...
Kiguel & Liviatan, 1990. Programs based on tight fiscal and monetary policies (the orthodox approach) are slow at reducing inflation in high-inflation countries. Why? The policy-game approach sheds light on the credibility problems that raise the public's inflationary expectations.