Exploring the Mechanics of Chronic Inflation and Hyperinflation

Business & Finance, Economics, Public Finance, Macroeconomics
Cover of the book Exploring the Mechanics of Chronic Inflation and Hyperinflation by Fernando de Holanda Barbosa, Springer International Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Fernando de Holanda Barbosa ISBN: 9783319445120
Publisher: Springer International Publishing Publication: October 17, 2016
Imprint: Springer Language: English
Author: Fernando de Holanda Barbosa
ISBN: 9783319445120
Publisher: Springer International Publishing
Publication: October 17, 2016
Imprint: Springer
Language: English

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. 

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

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. 

More books from Springer International Publishing

Cover of the book Cartilage by Fernando de Holanda Barbosa
Cover of the book Clinical Handbook of Obsessive-Compulsive and Related Disorders by Fernando de Holanda Barbosa
Cover of the book A Rumor about the Jews by Fernando de Holanda Barbosa
Cover of the book Hybrid Micro-Machining Processes by Fernando de Holanda Barbosa
Cover of the book Hermeneutics of the Film World by Fernando de Holanda Barbosa
Cover of the book A Reference Architecture for Real-Time Performance Measurement by Fernando de Holanda Barbosa
Cover of the book Advances in Human Factors in Cybersecurity by Fernando de Holanda Barbosa
Cover of the book On the Move to Meaningful Internet Systems: OTM 2016 Conferences by Fernando de Holanda Barbosa
Cover of the book Biomolecular Imaging at High Spatial and Temporal Resolution In Vitro and In Vivo by Fernando de Holanda Barbosa
Cover of the book Clinical Medical Ethics by Fernando de Holanda Barbosa
Cover of the book Novel Therapeutic Approaches to the Treatment of Parkinson’s Disease by Fernando de Holanda Barbosa
Cover of the book Global Sourcing of Digital Services: Micro and Macro Perspectives by Fernando de Holanda Barbosa
Cover of the book Interoperability and Open-Source Solutions for the Internet of Things by Fernando de Holanda Barbosa
Cover of the book Almost Automorphic Type and Almost Periodic Type Functions in Abstract Spaces by Fernando de Holanda Barbosa
Cover of the book Hospital-Based Health Technology Assessment by Fernando de Holanda Barbosa
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy