This book presents a theoretical framework to explain chronic inflation and hyperinflation. The roots of these two phenomenon are a fiscal monetary regime in which money issues finance the public deficit. Chronic inflation is modeled by using both the old and the new Keynesian model, with a different policy rule. Instead of using the Taylor rule, the central bank policy rule states that money is issued to finance the public deficit. The chronic inflation models take into account the fact that indexation mechanisms adjust prices and wages, yielding the inertial component of inflation. The...
This book presents a theoretical framework to explain chronic inflation and hyperinflation. The roots of these two phenomenon are a fiscal monetary...
Macroeconomics is the application of economic theory to the study of the economy's growth, cycle and price-level determination. The price of money is the amount of goods bought with one unit of money, in other words, the inverse of the price level.
Macroeconomics is the application of economic theory to the study of the economy's growth, cycle and price-level determination. The price of money is ...
