@article {63406,
	title = {On the Political Economy of Temporary Stabilization Programs},
	year = {2002},
	month = {Jul 1, 2002},
	abstract = {This paper provides a political economy explanation for temporary exchange{\textendash}rate{\textendash}based stabilization programs by focusing on the distributional effects of real exchange{\textendash}rate appreciation. I propose an economy in which agents are endowed with either tradable or nontradable goods. Under a cash{\textendash}in{\textendash}advance assumption, a temporary reduction in the devaluation rate induces a consumption boom accompanied by real appreciation, which hurts the owners of tradable goods. The owners of nontradables have to weigh two opposing effects: an increase in the present value of nontradable goods wealth and a negative intertemporal substitution effect. For reasonable parameter values, owners of nontradables are better off.},
	author = {Alfaro, Laura}
}
