The Dynamics of High Inflation
| Author | : Laurence M. Ball |
| Publisher | : |
| Total Pages | : 50 |
| Release | : 1993 |
| ISBN-10 | : UCSD:31822016891814 |
| ISBN-13 | : |
| Rating | : 4/5 ( Downloads) |
Book Synopsis The Dynamics of High Inflation by : Laurence M. Ball
Download or read book The Dynamics of High Inflation written by Laurence M. Ball and published by . This book was released on 1993 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of a high-inflation economy. The model includes the government budget constraint and money demand equation of Cagan's 1956 model; an accelerationist Phillips curve that captures inflation inertia; and an aggregate-spending equation that accounts for the effects of the inflation tax. The paper derives the dynamic effects of fiscal policy, incomes policies, and supply shocks, and uses the results to interpret high-inflation episodes of the 1970s and 1980s.
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