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In Der Welle Des Preises Mitschwimmen: A Multichannel View of the Weimar Hyperinflation

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  • Andrea Sbarile

    (University of Genoa)

Abstract

German hyperinflation is often associated with the so-called “classical hyperinflations” in which a main cause can be identified as the predominant factor. However, some historical elements suggest the importance of multiple causes as occurred in Latin America hyperinflation. The limited availability of data on German inflation could pose a significant challenge in interpreting these historical events. I have built a database based on weekly data between January, 15 1921 and December, 29 1923 for inflation (based weighted mean for 68 cities), money base, nominal exchange rate, and wages. By employing specific common assumptions of inertial inflation theory and univariate and multivariate analyses through wavelet tools and causality methods (cross mapping and transfer entropy), I argue that Weimar inflation exhibited an overall persistence and that inflation, when viewed from a multichannel perspective, resulted from different causes acting on various time scales.

Suggested Citation

  • Andrea Sbarile, 2025. "In Der Welle Des Preises Mitschwimmen: A Multichannel View of the Weimar Hyperinflation," Open Economies Review, Springer, vol. 36(4), pages 1097-1124, September.
    • Handle: RePEc:kap:openec:v:36:y:2025:i:4:d:10.1007_s11079-025-09796-7
    DOI: 10.1007/s11079-025-09796-7
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    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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