Some Implications of Policy Games for High Inflation Economies

Programs based on tight fiscal and monetary policies (the ortho-dox 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 infla,tionary expecta-tions. The Policy. Research, and Extenul Affains Complex distIbtes PRE Wodcing Papess to diseninate the findings of work in progrss and to encourage the exchange of ideas among Bank saff and a othes intested in development issues. Tbesepaps carny the nmcs of the authors, rdlect only their views, and should be used and cited accordiny. The findings. interpratiars, and conclusions rne the authors ' own. They hould not be atuibuted to the World Bank, ita Board of Directs, its managenent. or any of its member counttifs. Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz e