Template-Type: ReDIF-Article 1.0

Author-Name: Harold James
Author-Workplace-Name: Princeton University
Author-Email: hjames@princeton.edu
Author-Person: pja546

Title: Hyperinflation after the First World War in Central Europe: Causes, Remedies, Consequences

Abstract: The paper examines in detail Germany and Poland, two of the four post-First
World War hyperinflations that provided the subject of Thomas Sargent's classic
comparative study of the circumstances in which inflations might be ended. It
counterposes the Czechoslovak case, where stabilisation occurred without prior
hyperinflation. Stabilisation brought substantial costs, most obviously in terms of
recession and unemployment. The peripheral inflating countries had sought to use
inflation to effect an international as well as an internal redistribution of wealth.
Ending the inflation was thus politically costly, and usually involved ceding some
aspect of sovereignty or limiting the room for domestic political manoeuvre. Hence
many inflations were not really ended, but produced premature celebrations before
a relapse, accompanied by a move against external control.

Classification-JEL: E31, E52, E61, E63, E65, P44
Keywords: hyperinflation, inflation shocks, stabilisation, disinflation, monetary policy, fiscal policy, post-First World War
Pages: 54-68
Volume: 23
Issue: 4
Year: 2024
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-23-4-st3-james.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:23:y:2024:i:4:p:54-68