Expectations in an open economy hyperinflation: Evidence from Germany 1921–23

Reghezza, Alessio; Seghezza, Elena; Thornton, John

doi:10.1016/j.econlet.2020.109176

Cited by 3 publications

(2 citation statements)

References 12 publications

(19 reference statements)

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“…In a time of inflation and hyperinflation, hard assets as well as foreign assets have been argued to become desired and valuable. The research work of Reghezza et al (2020) shows that even in the time of German hyperinflation, the desire for foreign assets (capital outflows) was one driver of domestic market inflation. Rickards (2012) mentions that in Germany, this foreign asset flight was to Swiss francs and gold, while the favored domestically produced items were pianos.…”

Section: Literature Review: Inflation and Hyperinflationmentioning

confidence: 99%

“…For example, in the aftermath of World War II (WW II), hyperinflation was experienced (Siyakiya 2015) in Greece (peak in 1944), Hungary (peak in 1946), andChina (peak in 1949). Similarly, in the aftermath of World War I, Germany (peak in 1923) experienced its well-known hyperinflation period (Reghezza et al 2020). Hyperinflation refers to a change in prices, which is by definition an increase of 50% or more per month, or 1000% or more per annum (Frankel 2010).…”

Section: Introductionmentioning

confidence: 99%

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Inflation and Hyperinflation Countries in 2018–2020: Risks of Different Assets and Foreign Trade

Hilmola

2021

JRFM

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Since the global financial crisis (2008–2009), central banks and governments in developed countries have relied upon loose monetary and financial policy. In the coronavirus pandemic era, these policies were taken even more to the extreme. In 2021, countries around the world started to experience product availability issues, and inflation in some cases was extremely high. There has been debate about the possibility of persistent high inflation. However, risks to assets and foreign trade in this new situation are unknown as all important hyperinflation cases are from decades to century-old. It is important to know what kind of implications high inflation has on modern economies. Therefore, in this study, 10 countries with the highest inflation were selected to be examined in the period of 2018–2020. In these countries, currencies lost a considerable amount of their value against US dollar in 2018–2020. Stock market indexes in many cases provided very high returns in local currency terms; however, against the US dollar, the index yield changed for the substantially negative. Apartment prices in general declined as well. In foreign trade, imports generally declined, while exports were mixed or even increased. However, it should be noted that all of these observations are influenced by the pandemic era and special circumstances of a particular country.

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Section: Literature Review: Inflation and Hyperinflationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Inflation and Hyperinflation Countries in 2018–2020: Risks of Different Assets and Foreign Trade

Hilmola

2021

JRFM

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Was There a Sudden Stop at the Root of German Hyperinflation?

Pittaluga,

Seghezza

2024

Frontiers in Economic History

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World’s Economy and Future Post-Covid-19: A Case Study China Will Impose New World Order

Gul¹,

Ghafoor²,

Zahra³

2021

RMCJ Soc. & Hum.

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The aim of this paper describes world’s future post-COVID-19. Coronavirus resemble pandemics exist in centuries. Exactly, one century ago influenza flu affected the world economy and social order. About millions of people died caused by pandemics along with weak and collapsed economies. The pandemic entirely affected every sphere of life, including, Labor demand and supply, tourism, economy, politics, and nature of the world. There are two possible scenarios of the world post-Covid-19. First one world will enter new wars, hunger, and world order and so on. Second one, whole states collectively tackle this pandemic. Firstly, Economic and military strength determine the political power of a state. The US has been facing severe and critical crises since 2016. Thus, the US will not maintain power more and more. USA’s One Step Back Policy will collapse USA power and Trump loses the election, and new president will impose new wars on Asian land. European Union will disintegrate due to race of power among the powers along with world face. Secondly, China will impose a new world order after COVID-19. Because China policies totally different from previous superpowers. During supremacy, the Great Britain and USA were adopted aggressive political and military policies. In Contrast, China adopted an economic policy which is beneficial for every society. China started to lead the world economically and politically. So, this gap will create a new war in Asia and globally. China Economic Network policy (BRI) would cover world in 2040 years. Thirdly, world economies will face severe economic conditions like 1923, 1929 and 2008. The current recession and political scenarios are knocking a depression on world economic door. Fourthly, emerging economy India will not cover economic power till 2025. Maybe India never achieves economic prosperity due to Jingoistic approach. In this paper, we predicate world’s economic and politics shape post-covid-19. The virus is changed every sphere and every field of life. ? We used NiGEM model. It’s just predication, will what occur in future. About 3% Gross Domestic Product, 10% consumption, 18% manufacturing and 13% to 32% trade declined due to current pandemics. Universal recession also take place. Now, how the world’s powerful state will push the world into new wars. Which one imposed new world order post-covid-19? Does a new Great Depression knock world door

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Expectations in an open economy hyperinflation: Evidence from Germany 1921–23

Cited by 3 publications

References 12 publications

Inflation and Hyperinflation Countries in 2018–2020: Risks of Different Assets and Foreign Trade

Inflation and Hyperinflation Countries in 2018–2020: Risks of Different Assets and Foreign Trade

Was There a Sudden Stop at the Root of German Hyperinflation?

World’s Economy and Future Post-Covid-19: A Case Study China Will Impose New World Order

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