Global Bifurcations, Credit Rationing and Recurrent Hyperinflations
AbstractThis paper proposes an alternative explanation to recurrent hyperinflations other than bounded rationality by explicitly considering the global dynamics of an economy with credit market frictions. In this paper we show that hyperinflations are self-generated and are manifestations of the underlying global dynamic properties of an economy with perfect foresight rational agents that face credit rationing. Moreover, we found that economies that are more credit constrained are more likely to experience recurrent hyperinflations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 239.
Date of creation: Dec 2005
Date of revision:
Nonlinear Dynamical Systems; Global Dynamics;
Other versions of this item:
- Gomis-Porqueras, Pere & Haro, Alex, 2007. "Global bifurcations, credit rationing and recurrent hyperinflations," Journal of Economic Dynamics and Control, Elsevier, vol. 31(2), pages 473-491, February.
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Patrick Pintus & Ducan Sands & Robin De Vilder, 1998.
"On the Transition from Local Regular to Global Irregular Fluctuations,"
98-54, Centre de Recherche en Economie et Statistique.
- Pintus, Patrick & Sands, Duncan & de Vilder, Robin, 2000. "On the transition from local regular to global irregular fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 247-272, February.
- P. Pintus & D. Sands & R. de Vilder, 1998. "On the transition from local regular to global irregular fluctuations," THEMA Working Papers 98-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Pintus, P. & Sands, D. & de Vilder, R., 1998. "On the Transition from Local Regular to Global Iregular Fluctuations," Papers 9818, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Pintus, Patrick & Sands, Ducan & De Vilder, Robin, 1996. "On the transition from local regular to global irregular fluctuations," CEPREMAP Working Papers (Couverture Orange) 9617, CEPREMAP.
- Brock, W.A. & Hommes, C.H., 1996.
"A Rational Route to Randomness,"
9530r, Wisconsin Madison - Social Systems.
- Bental, Benjamin & Eckstein, Zvi, 1990.
"The Dynamics of Inflation with Constant Deficit under Expected Regime Change,"
Royal Economic Society, vol. 100(403), pages 1245-60, December.
- Bental, B. & Eckstein, Z., 1988. "The Dynamics Of Inflation With Constant Deficit Under Expected Regime Change," Papers 35-88, Tel Aviv.
- Bruce D. Smith & John H. Boyd, 1998. "Capital market imperfections in a monetary growth model," Economic Theory, Springer, vol. 11(2), pages 241-273.
- Marcet, A. & Nicolini, J.P., 1997.
"Recurrent Hyperinflations and Learning,"
9721, Centro de Estudios Monetarios Y Financieros-.
- Marcet, Albert & Nicolini, Juan Pablo, 1998. "Recurrent Hyperinflations and Learning," CEPR Discussion Papers 1875, C.E.P.R. Discussion Papers.
- Albert Marcet & Juan P. Nicolini, 1995. "Recurrent hyperinflations and learning," Economics Working Papers 244, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2001.
- Gomis-Porqueras, Pere & Haro, Alex, 2003.
"Global dynamics in macroeconomics: an overlapping generations example,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 27(11), pages 1941-1959.
- Gomis-Porqueras, Pere & Haro, Alex, 2003. "Global dynamics in macroeconomics: an overlapping generations example," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11-12), pages 1941-1959, September.
- Williamson, Stephen D., 1986.
"Costly monitoring, financial intermediation, and equilibrium credit rationing,"
Journal of Monetary Economics,
Elsevier, vol. 18(2), pages 159-179, September.
- Stephen D. Williamson, 1984. "Costly Monitoring, Financial Intermediation, and Equilibrium Credit Rationing," Working Papers 583, Queen's University, Department of Economics.
- de Vilder, Robin, 1996. "Complicated Endogenous Business Cycles under Gross Substitutability," Journal of Economic Theory, Elsevier, vol. 71(2), pages 416-442, November.
- Beatrix Paal, 2000. "Destabilizing effects of a successful stabilization: a forward-looking explanation of the second Hungarian hyperinflation," Economic Theory, Springer, vol. 15(3), pages 599-630.
- Evans, Jean Lynne & Yarrow, George Keith, 1981. "Some Implications of Alternative Expectations Hypotheses in the Monetary Analysis of Hyperinflations," Oxford Economic Papers, Oxford University Press, vol. 33(1), pages 61-80, March.
- Anna Agliari & George Vachadze, 2011. "Homoclinic and Heteroclinic Bifurcations in an Overlapping Generations Model with Credit Market Imperfection," Computational Economics, Society for Computational Economics, vol. 38(3), pages 241-260, October.
- Pere Gomis-Porqueras & Àlex Haro, 2008.
"A Geometric Description of a Macroeconomic Model with a Center Manifold,"
364, Barcelona Graduate School of Economics.
- Gomis-Porqueras, Pere & Haro, Àlex, 2009. "A geometric description of a macroeconomic model with a center manifold," Journal of Economic Dynamics and Control, Elsevier, vol. 33(6), pages 1217-1235, June.
- Alex Haro & Pere Gomis-Poruqeras, 2004. "Computing Center Manifolds: A Macroeconomic Example," Computing in Economics and Finance 2004 38, Society for Computational Economics.
- Peter Bernholz & Peter Kugler, 2009. "The Success of Currency Reforms to End Great Inflations: An Empirical Analysis of 34 High Inflations," German Economic Review, Verein für Socialpolitik, vol. 10, pages 165-175, 05.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar).
If references are entirely missing, you can add them using this form.