Economic Exchange During Hyperinflation
Bibliographic Data
| ID | 10179294 |
|---|---|
| Authors | Alessandra Casella (Stanford University), Jonathan S Feinstein (Stanford University) |
| Year | 1990 |
| Volume | 98 |
| Issue | 1 |
| Pages | 1-27 |
| Publication date | 1990-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261666 |
| OpenAlex | W2066734031 |
| Language | EN |
| Citations received | 4 |
| References cited | 13 |
Historical evidence indicates that hyperinflations can disrupt individuals' normal trading patterns and impede the orderly functioning of markets. To explore these issues, we construct a theoretical model of hyperinflation that focuses on individuals and their process of economic exchange. In our model buyers must carry cash while shopping, and some transactions take place in a decentralized setting in which buyer and seller negotiate over the terms of trade of an indivisible good. Since buyers face the constant threat of incoming younger (hence richer) customers, their bargaining position is weakened by inflation, allowing sellers to extract a higher real price. However, we show that higher inflation also reduces buyers' search, increasing sellers' wait for customers. As a result, the volume of transactions concluded in the decentralized sector falls. At high enough rates of inflation, all agents suffer a welfare loss
Cash · Economics · Hyperinflation · Inflation (cosmology · Macroeconomics · Market economy · Microeconomics · Monetary economics · Monetary policy · Negotiation · Position (finance · Welfare · Economic theories and models · Economic Theory and Institutions · Experimental Behavioral Economics Studies · Finance
The Optimum Quantity of Money
Equilibrium Distributions of Sales and Advertising Prices
Perfect Equilibrium in a Bargaining Model
Optimal fiscal and monetary policy in an economy without capital
Civil Servants and the Politics of Inflation in Germany, 1914-1924
German Peasants and Agrarian Politics, 1914-1924
Iron and Steel in the German Inflation, 1916-1923
Inflation and Welfare in the Steady State
Market Fundamentals versus Price-Level Bubbles
Aggregate Demand Management in Search Equilibrium
A Monetary Equilibrium Model with Transactions Costs
The Experience of Inflation. International and Comparative Studies
The Great Inflation
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,14 |
| Citation span | 1997 - 2010 (14) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |