Since 1947, hyperinflations (by Cagan's definition) in market economies have been rare. Much more common have been longer inflationary processes with inflation rates above 100 percent per annum. Based on a sample of 133 countries, and using the 100 percent threshold as the basis for a definition of very high inflation episodes, this paper examines the main characteristics of such inflations. Among other things, we find that (i) close to 20 percent of countries have experienced inflation above 100 percent per annum; (ii) higher inflation tends to be more unstable; (iii) in high inflation countries, the relationship between the fiscal balance and seigniorage is strong both in the short and long-run; (iv) inflation inertia decreases as average inflation rises; (v) high inflation is associated with poor macroeconomic performance; and (vi) stabilizations from high inflation that rely on the exchange rate as the nominal anchor are expansionary.
This ¡s u working paper and the author would welcome any comments on the present text. Citations should reter to an unpublished manuscript, mentioning the author und the date of issuance by the International Monetary Fund. The views expressed are those of the author and do not necessarily represent those of the Fund.
This is a working paper and the aulhor would welcome any comments on the present textCitations should refer in an unpublished manuscript, mentioning the aulhor and the dale of issuance by the International Monelary Fund The views expressed are those of the aulhor and do not necessarily represent those of the Fund WP/90/110 INTERNATIONAL MONETARY FUND
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