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Die Selbststabilisierung von Hyperinflationen: Eine überraschende monetäre Arithmetik
Gersbach, Hans | Nedwed, Harald
Credit and Capital Markets – Kredit und Kapital, Vol. 23 (1990), Iss. 3 : pp. 318–332
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Hans Gersbach, Basel
Harald Nedwed, Basel
References
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Bernholz, P.: „Currency Competition, Inflation, Gresham's Law and Exchange Kate", Journal of Institutional and Theoretical Economics, Vol. 145, 1989, S. 465 – 488.
Google Scholar -
Bernholz, P. und Jaksch, H. J.: „An Implausible Theory of Inflation", Weltwirtschaftliches Archiv, Vol. 125, Nr. 2, 1989, S. 359 – 365.
Google Scholar -
Cagan, P.: „The Monetary Dynamics of Hyperinflation", in: Friedman, M. (Hrsg.): Studies in the Quantity Theory of Money, University of Chicago Press, Chicago 1956.
Google Scholar -
Capie, F.: „Conditions in Which Very Rapid Inflation Has Appeared", Carnegie-Rochester Conference on Public Choice Policy, Vol.24, 1986, S. 115-168.
Google Scholar -
Dombusch, R. und Fisher, S.: „Stopping Hyperinflation Past and Present", Weltwirtschaftliches Archiv, Vol. 122, 1986, S. 1 – 47.
Google Scholar -
Dornbusch, R.: „Exchange Rates and Inflation", MIT Press, Cambridge 1988.
Google Scholar -
Evans, I. L. und Yarrow, G. K.: „Some Implications of Alternative Expectations Hypotheses in the Monetary Analysis of Hyperinflation", Oxford Economic Papers, Vol. 33, 1981, S. 61 – 80.
Google Scholar -
Gersbach, H.: „General Conditions for Hyperinflation", Universität Basel, mimeo, 1989.
Google Scholar
Abstract
Self-Stabilization of Hyperinflation — Surprising Monetary Arithmetics
This paper discusses the interrelations between budget deficits, money supply growth and rates of inflation in periods of hyperinflation. The traditional approach is generalized and analyzed in respect of its explanatory value for high rates of inflation, the interrelations between budget deficits and rates of inflation as well as stabilization properties.
It turns out that monetary models are unable to explain the emergence of unlimited inflationary processes when governmental budget deficits are monetized by the central bank. Moreover, monetary arithmetics do not permit any monotonous link between levels of inflation in balanced inflationary situations and the level of the real budget deficit. When the budget deficit grows in the course of the inflationary process, this leads to a curbing of inflation.
Stabilizing the level of prices in periods of hyperinflation presupposes a non-recurring drastic increase in nominal money supply on the one hand and the binding of governmental authorities to a complete waiver of monetization in future on the other. When, after stabilization, budget deficits are financed again, the outcome is deflation.