Monetary Explanations of the Weimar Republic's Hyperinflation: Some Neglected Contributions in Contemporary German Literature

Posted: 25 Aug 1998

See all articles by David E. W. Laidler

David E. W. Laidler

University of Western Ontario - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Abstract

Contemporary analyses of the Weimar Hyperinflation, by Hahn, Bortkiewics, and Mises, have been inadequately appreciated by earlier commentators. They used the quantity theory, supplemented by analysis of inflation expectations, to explain hyperinflation's stylised facts. The latter two treated expectations as forward looking, related to the fiscal situation, in the spirit of Sargent's later analysis. They also argued that the effects of expectations on price setting behaviour could create a shortfall of money currently in circulation from the demand for it, thus sketching a disequilibrium analysis of hyperinflation that has no exact parallel in modern treatments of the topic.

JEL Classification: E31, N24

Suggested Citation

Laidler, David E. W. and Stadler, George W., Monetary Explanations of the Weimar Republic's Hyperinflation: Some Neglected Contributions in Contemporary German Literature. Available at SSRN: https://ssrn.com/abstract=97313

David E. W. Laidler (Contact Author)

University of Western Ontario - Department of Economics ( email )

London, Ontario N6A 5B8
Canada

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

No contact information is available for George W. Stadler

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