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Terminating Hyperinflation in the Dismembered Habsburg Monarchy


  • Wicker, Elmus R


To assess the validity of Thomas Sargent's claim that hyperinflation can be terminated without dire employment effects, monthly unemploymentpercentage estimates were constructed for Poland, Hungary, and Austriaover the period both before and after monetary stabilization followingWorld War I. These data reveal that there were significant effects onemployment in the three territories. Unemployment peaked in Poland at alittle less than 13 percent; in Hungary at 12 percent and probably higher; and in Austria at 7 percent. An attempt is made to identify those considerations that contributed to the emergence of unemploymentwith the advent of monetary stabilization. Copyright 1986 by American Economic Association.

Suggested Citation

  • Wicker, Elmus R, 1986. "Terminating Hyperinflation in the Dismembered Habsburg Monarchy," American Economic Review, American Economic Association, vol. 76(3), pages 350-364, June.
  • Handle: RePEc:aea:aecrev:v:76:y:1986:i:3:p:350-64

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Pablo Kurlat, 2019. "Deposit Spreads and the Welfare Cost of Inflation," 2019 Meeting Papers 211, Society for Economic Dynamics.
    2. Kiguel, Miguel & Liviatan, Nissan, 1990. "The business cycle associated with exchange-rate-based stabilization," Policy Research Working Paper Series 513, The World Bank.
    3. Bordo, Michael D. & Schwartz, Anna J., 1999. "Monetary policy regimes and economic performance: The historical record," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.),Handbook of Macroeconomics, edition 1, volume 1, chapter 3, pages 149-234, Elsevier.
    4. Calvo, Guillermo A. & Vegh, Carlos A., 1999. "Inflation stabilization and bop crises in developing countries," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.),Handbook of Macroeconomics, edition 1, volume 1, chapter 24, pages 1531-1614, Elsevier.
    5. Dimitris Mavridis & Pálma Mosberger, 2017. "Income Inequality and Incentives. The Quasi-Natural Experiment of Hungary 1914-2008," World Inequality Lab Working Papers halshs-02797438, HAL.
    6. Vegh, Carlos, 1991. "Stopping High Inflation: An Analytical Overview," MPRA Paper 20175, University Library of Munich, Germany.
    7. Binder, Carola Conces, 2016. "Estimation of historical inflation expectations," Explorations in Economic History, Elsevier, vol. 61(C), pages 1-31.
    8. Dimitris Mavridis & Pálma Mosberger, 2017. "Income Inequality and Incentives. The Quasi-Natural Experiment of Hungary 1914-2008," Working Papers halshs-02797438, HAL.
    9. S. Rao Aiyagari & R. Anton Braun & Zvi Eckstein, 1998. "Transaction Services, Inflation, and Welfare," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1274-1301, December.
    10. Pablo Kurlat, 2018. "Deposit Spreads and the Welfare Cost of Inflation," NBER Working Papers 25385, National Bureau of Economic Research, Inc.
    11. Kurlat, Pablo, 2019. "Deposit spreads and the welfare cost of inflation," Journal of Monetary Economics, Elsevier, vol. 106(C), pages 78-93.

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