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Inflation Rates and Money Growth During High-Inflations
Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 2 : pp. 230–238
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Hans Gersbach, Basel
Cited By
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A Striking Result or just a Matter of Misinterpretation?
Katrin, Wesche,
Susanne, Wierum,
Credit and Capital Markets - Kredit und Kapital, Vol. 28 (1995), Iss. 2 P.216
https://doi.org/10.3790/ccm.28.2.216 [Citations: 0]
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Abstract
Inflation Rates and Money Growth During High-Inflations
In this paper, the relatively low correlation between money growth and inflation rates during accelerating inflation is explained by a dynamic version of the standard monetary framework. Whereas steady state analysis exhibits a strong uniformity between inflation and money growth rate, a dynamic analysis shows a weaker relationship. This result rests on the fact that anticipated accelerating inflation is only sustainable if real balances decrease which, however, sets an upper bound for the growth rate of the nominal money supply