Transcript m4Inflation

Interest under high inflation
Anne Harrison
Present situation
• Two different approaches
• Annex B to chapter XIX
• Inflation accounting manual
Problem
• Alternatives inconsistent
• Conceptually level of inflation not trigger
for including holding gains and losses in
income; any level of inflation does so
• Interest not only or even main problem
under high inflation - measuring current
price flows
Proposal
• Replace annex B by more general text
on the problems of accounting under
high inflation
• Keep the topic on the research agenda
• Consider updating inflation accounting
manual