Suriname: A Case Study of High Inflation

Author/Editor:

Sukhdev Shah ; Benedikt Braumann

Publication Date:

November 1, 1999

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Suriname recently went through a period of destabilizationthat that bordered on hyperinflation. The country’s experience provides a good illustration to study the genesis and dynamics of high inflation and includes some unusual phenomena, such as a monetary overhang, an eight-tiered exchange rate, and inflationary gold purchases by the central bank. High inflation also had a significant impact on the real economy. This paper compares the experience of Suriname with other countries discussed in the recent stabilization literature. It finds strong evidence of intertemporal demand effects, which occurred as the public reacted to the temporary bout of high inflation.

Series:

Working Paper No. 1999/157

Subject:

Consumption Foreign exchange Government debt management Inflation Labor National accounts Prices Public financial management (PFM) Real exchange rates Real wages

English

Publication Date:

November 1, 1999

ISBN/ISSN:

9781451857474/1018-5941

Stock No:

WPIEA1571999

Pages:

24

Please address any questions about this title to publications@imf.org