"A devaluation would not be inflationary because everyone already pegged their expectations to the parallel exchange rate; meanwhile, utility hikes would not be inflationary because of the budget constraint simply reducing excess spending in something else. At the household level, both seem reasonable enough, but at the firm level it would be extremely mistaken to assume either."
"A devaluation would not be inflationary because everyone already pegged their expectations to the parallel exchange rate; meanwhile, utility hikes would not be inflationary because of the budget constraint simply reducing excess spending in something else. At the household level, both seem reasonable enough, but at the firm level it would be extremely mistaken to assume either."
¿Por qué? ¿Algo algo "salarios pegajosos"?
Great work as always: entertaining, witty and reflective on the past and extract some lessons for the future.