Frequent episoded of high inflation and real effects

W W Charemza, Svetlana Makarova, Imran H. Shah

Research output: Contribution to conferencePaper


The paper analyses inflationary real effects in situation where there are frequent episodes of high inflation. It is conjectured with the increase in high inflation, and when differences between the expected and output-neutral inflation become large, output stimulation through inflationary shocks is more effective than otherwise. It is shown that this conjecture is valid for most countries with high inflation episodes, where inflation is greater than 4.8% for at least 25% of quarterly observations. This leads to a simple policy prescription that anti-inflationary monetary decisions should be undertaken in periods where the expected inflation exceeds output-neutral.
Original languageEnglish
Number of pages22
Publication statusUnpublished - Jul 2013
EventEcoMod 2013: International Conference on Econcomic Modelling - Prague, Czech Republic
Duration: 1 Jul 20133 Jul 2013


ConferenceEcoMod 2013: International Conference on Econcomic Modelling
Country/TerritoryCzech Republic


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