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Title
Exploring the mechanics of chronic inflation and hyperinflation / Fernando de Holanda Barbosa.
ISBN
9783319445120 (electronic book)
331944512X (electronic book)
9783319445113
3319445111
Published
Cham, Switzerland : Springer, [2017]
Language
English
Description
1 online resource (x, 116 pages)
Other Standard Identifiers
10.1007/978-3-319-44512-0 doi
Call Number
HG229 .B37 2017eb
Dewey Decimal Classification
332.41
Summary
This book presents a theoretical framework to explain chronic inflation and hyperinflation. The roots of these two phenomenon are a fiscal monetary regime in which money issues finance the public deficit. Chronic inflation is modeled by using both the old and the new Keynesian model, with a different policy rule. Instead of using the Taylor rule, the central bank policy rule states that money is issued to finance the public deficit. The chronic inflation models take into account the fact that indexation mechanisms adjust prices and wages, yielding the inertial component of inflation. The dynamics of these models can be very unstable under parameter changes or shocks that hit the economy. The previous hyperinflation models surveyed in this book attempt to explain hyperinflation as a bubble phenomenon because they assume a constant real deficit financed by money. The mechanics of hyperinflation models in this book explains hyperinflation by a fiscal crisis, characterized by an increasing fiscal deficit. This fiscal crisis yields an intertemporal budget constraint that is not sustainable. The analysis of the pathology of hyperinflation uses the same tools employed to understand the pathologies of public debt and external debt crises. The hyperinflation model allows a taxonomy of hyperinflations, namely bubble, weak and strong, that can be tested with the inflation tax revenue curve. .
Bibliography, etc. Note
Includes bibliographical references (pages 113-116).
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Access limited to authorized users.
Digital File Characteristics
text file PDF
Source of Description
Description based on print version record.
Series
SpringerBriefs in economics.
Preface
I
Hyperinflation Theories: an Abridged Survey
II
The Origins and Consequences of Inflation in Latin America
III
Chronic Inflation and Hyperinflation
IV
Inflation Tax and Money Essentiality
V
Hyperinflation: Inflation Tax and Economic Policy Regime
VI
Competitive Equilibrium Hyperinflation under Rational Expectations
VII
Hyperinflation Pitfalls: Fundamentals versus Bubbles
VIII
Bubble, Weak and Strong Hyperinflation: Theory and Empirical Evidence
References.
