Gradual disinflation program leads to economic boom and sustained growth.
The article discusses how a gradual decrease in the rate of devaluation of a currency can lead to positive effects in the economy. This process, known as disinflation, can result in an initial boost in economic activity without a later downturn. By reducing the monetary wedge caused by certain constraints, the program can lead to a gradual increase in consumption and real exchange rate appreciation. This can also result in current account deficits as the program progresses.