TY  - JOUR
AU  - Ball,Laurence
TI  - The Dynamics of High Inflation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4578
PY  - 1993
Y2  - December 1993
UR  - http://www.nber.org/papers/w4578
L1  - http://www.nber.org/papers/w4578.pdf
N1  - Author contact info:
Laurence M. Ball
Department of Economics
Johns Hopkins University
Baltimore, MD 21218
Tel: 410/516-7605
Fax: 410/516-7600
E-Mail: lball@jhu.edu
AB  - This paper presents a model of a high-inflation economy.  The model includes the government budget constraint and money demand equation of Cagan's 1956 model; an accelerationist Phillips curve that captures inflation inertia; and an aggregate-spending equation that accounts for the effects of the inflation tax.  The paper derives the dynamic effects of fiscal policy, incomes policies, and supply shocks, and uses the results to interpret high-inflation episodes of the 1970s and 1980s.
ER  -