The Modern Hyperinflation Cycle: Some New Empirical Regularities
IMF Working Papers, December 7, 2018
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- The Modern Hyperinflation Cycle: Some New Empirical Regularities
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Bibliographic details
- Authors: Jose Saboin
- Published: December 7, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484385388.001
Summary and data scope
- Using a database of up to 62 variables for 196 countries over 57 years, a hyperinflation cycle has been characterized to propose a broader setting of stylized facts.
- Pages: 46
- Volume: 2018
- Issue: 266
- Series: Working Paper No. 2018/266
- DOI: https://doi.org/10.5089/9781484385388.001
- Stock No: WPIEA2018266
- ISBN: 9781484385388
- ISSN: 1018-5941
Core empirical findings
- Hyperinflation cycles occur in contexts with:
- (i) depressed economic freedoms
- (ii) deteriorated socioeconomic conditions and rule of law
- (iii) high levels of domestic conflictivity and government instability
- Social infrastructure factors improve during stabilization but remain substantially lower than in the representative non-hyperinflation country, suggesting an important role for them in the occurrence of modern hyperinflations.
Role of international financial assistance in stabilization
- A clear majority of hyperinflation countries used international financial assistance.
- Use of international financial assistance was associated with:
- (i) further improving their economic freedoms
- (ii) greater fiscal flexibility
- (iii) more exchange rate stability
Thematic subjects and keywords
- Subject: Exchange rate arrangements, Exchange rates, External debt, Foreign exchange, Hyperinflation, Inflation, Prices
- Keywords: Africa, Economic Freedoms, Exchange rate arrangements, Exchange rates, Hyperinflation, hyperinflation cycle, hyperinflation dynamics, hyperinflation episode, hyperinflation literature, hyperinflation process, improvement government stability, Inflation, Institutions, Multilateral Assistance, representative country, Social Infrastructure, WP
Source: IMF Working Paper "The Modern Hyperinflation Cycle: Some New Empirical Regularities" by Jose Saboin, December 7, 2018 (Working Paper No. 2018/266).
Content in this bundle
- The Modern Hyperinflation Cycle: Some New Empirical Regularities, WP/18/266, December 2018