## Modern Hyper- and High Inflations

_IMF Working Papers, November 1, 2002_

## Source details

**Canonical URL:** [Modern Hyper- and High Inflations](https://www.imf.org/en/publications/wp/issues/2016/12/30/modern-hyper-and-high-inflations-16115)

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- [Markdown version](/en/publications/wp/issues/2016/12/30/modern-hyper-and-high-inflations-16115/index.md)
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## Bibliographic details
- Authors: Stanley Fischer, Ratna Sahay, Carlos A. Végh Gramont
- Published: November 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860023.001

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### Overview
- Since 1947, hyperinflations (by Cagan’s definition) in market economies have been rare; longer inflationary processes with inflation rates above 100 percent per annum have been much more common.
- The paper uses a sample of 133 countries and adopts the 100 percent threshold as the basis for a definition of very high inflation episodes.
- The analysis examines the main characteristics of very high inflation episodes.

### Key findings
- Close to 20 percent of countries have experienced inflation above 100 percent per annum.
- Higher inflation tends to be more unstable.
- In high-inflation countries, the relationship between the fiscal balance and seigniorage is strong both in the short and long run’s.
- Inflation inertia decreases as average inflation rises.
- High-inflation is associated with poor macroeconomic performance.
- Stabilizations from high inflation that rely on the exchange rate as the nominal anchor are expansionary.

### Empirical scope and technical approach
- Sample size: 133 countries.
- Threshold for very high inflation episodes: 100 percent per annum.
- Time reference for rarity of hyperinflations: since 1947.

### Subjects and thematic focus
- Subjects: Consumption, Fiscal policy, Fiscal stance, Government debt management, Hyperinflation, Inflation, National accounts, Prices, Public financial management (PFM).
- Keywords include: Africa, Caribbean, Consumption, durable goods, Europe, Fiscal deficit, Fiscal stance, Government debt management, growth, Hyperinflation, Inflation, inflation country, inflationary dynamics, Laffer curve, money growth, money-inflation link, nominal exchange rate, rate of inflation, South America, stabilization, WP.

*Source: Modern Hyper- and High Inflations, Stanley Fischer; Ratna Sahay; Carlos A. Végh Gramont, IMF Working Papers, November 1, 2002.*

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## Content in this bundle

- **Modern Hyper- and High Inflations - WP/02/197, CORRECTED**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/modern-hyper-and-high-inflations-16115_