Hyperinflation in a small open economy with a fixed exchange rate: A post Keynesian view

Marie, Jonathan; Charles, Sébastien

doi:10.1080/01603477.2016.1200950

Cited by 15 publications

(15 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In this respect our model bears comparison to that ofCharles and Marie (2016) discussed abovealthough as will become clear, the exact processes that we hold responsible for igniting and subsequently propagating a strato-and possibly hyper-inflation episode are different form theirs. There is no reason to believe that the various processes that we and Charles and Marie (2016) emphasize are mutually exclusive, however.15 Blecker (2011) andLavoie (2014) combine elements of both approaches in the specification of the price and wage growth equations that comprise their conflicting-claims inflation model.…”

mentioning

confidence: 85%

“…Contemporary models in this tradition include Vera (2010) and Marie and Charles (2016). Vera (2010) develops a model wherein the economic adjustments following a balance of payments shock may lead to conflict inflation (Vera, 2010: 612-3).…”

Section: -Contemporary Post-keynesian Analysismentioning

confidence: 99%

“…Vera (2010) develops a model wherein the economic adjustments following a balance of payments shock may lead to conflict inflation (Vera, 2010: 612-3). More recently, Charles and Marie (2016) analyze the conditions wherein an economy moves from a high-inflation regime to a hyperinflation regime. In their model, firms' expectations of the nominal exchange rate depend on the level of foreign debt and are a crucial factor contributing to the emergence of hyperinflation.…”

Section: -Contemporary Post-keynesian Analysismentioning

confidence: 99%

“…Charles and Marie (2016) develop a Post-Keynesian model of hyperinflation inspired byRobinson (1938) andKalecki (1962), wherein they try to "combine Robinson´s view of the exchange rate and Kalecki´s idea about the importance of expected inflation"(Charles and Marie, 2016: 362). They argue that Robinson and Kalecki "founded the post Keynesian view of hyperinflation"(Charles and Marie, 2016: 362).…”

mentioning

confidence: 99%

“…Charles and Marie (2016) generate multiple equilibria, including an unstable equilibrium wherein both the inflation rate and foreign debt are high. In this unstable equilibrium, "a small positive shock on foreign debt and/or on domestic prices will send the economy into a hyperinflationary process.…”

mentioning

confidence: 99%

See 4 more Smart Citations

Nominal exchange rate shocks and inflation in an open economy: towards a structuralist inflation targeting agenda

Bastian¹,

Setterfield²

2020

Cambridge Journal of Economics

View full text Add to dashboard Cite

This paper develops a model of inflation in an open economy. The model permits analysis of the susceptibility of open economies to permanent inflationary consequences arising from transitory foreign exchange shocks. Sources of structural vulnerability to such events are identified, and means of addressing these structural vulnerabilities are discussed. Ultimately, the paper arrives at a ‘structuralist inflation targeting agenda’. Based on a proper conception of inflation dynamics, this involves ‘getting inflation targeting right’ rather than either accepting mainstream inflation targeting prescriptions or simply neglecting inflation altogether.

show abstract

mentioning

confidence: 85%

Section: -Contemporary Post-keynesian Analysismentioning

confidence: 99%

Section: -Contemporary Post-keynesian Analysismentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

Nominal exchange rate shocks and inflation in an open economy: towards a structuralist inflation targeting agenda

Bastian¹,

Setterfield²

2020

Cambridge Journal of Economics

View full text Add to dashboard Cite

show abstract

Convergence on inflation and divergence on price control among post Keynesian pioneers: insights from Galbraith and Lerner

Chirat¹,

Clerc²

2023

Journal of Post Keynesian Economics

View full text Add to dashboard Cite

A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate?

Charles

Marie

2020

Review of Political Economy

Self Cite

View full text Add to dashboard Cite

This note aims at analyzing Bulgaria's high inflation regime during the 1990s. Two competing causes of high inflation are explored: changes in the rate of growth of the money supply in the economy and changes in the foreign exchange rate. Both correspond to traditional theoretical explanations: the monetarist view and the balance of payments approach. Evidence suggests that a variation in the exchange rate is significant in explaining the high inflation regime in Bulgaria whereas monetary growth appears to be insignificant. Consequently, the paper underlines the importance of stabilizing the exchange rate in the short run in order to avoid high inflation.

show abstract

Hyperinflation in a small open economy with a fixed exchange rate: A post Keynesian view

Cited by 15 publications

References 31 publications

Nominal exchange rate shocks and inflation in an open economy: towards a structuralist inflation targeting agenda

Nominal exchange rate shocks and inflation in an open economy: towards a structuralist inflation targeting agenda

Convergence on inflation and divergence on price control among post Keynesian pioneers: insights from Galbraith and Lerner

A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate?

Contact Info

Product

Resources

About