The Success of Currency Reforms to End Great Inflations: An Empirical Analysis of 34 High Inflations

Bernholz, Peter; Kugler, Peter

doi:doi:10.5451/unibas-ep61239

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123377

Title:

The Success of Currency Reforms to End Great Inflations: An Empirical Analysis of 34 High Inflations

Authors:

Bernholz, Peter
Kugler, Peter

Year of Publication:

2007

Series/Report no.:

WWZ Working Paper No. 13/07

Publisher:

University of Basel, Center of Business and Economics (WWZ), Basel

Abstract:

The estimation of an ordered probit model for currency reforms trying to end 31 hyperinflations and three big inflations of the 20th century shows that the introduction of an independent central bank and the adoption of a credibly fixed exchange rate are crucial for the success of a currency reform. In addition, currency reforms are demonstrated to be more difficult in centrally planned economies than in market economies.

Subjects:

Great inflations
currency reforms
central bank independence
fixed exchange rate

JEL:

E31
E58
E65

Persistent Identifier of the first edition:

doi:10.5451/unibas-ep61239

Document Type:

Working Paper

Appears in Collections:

WWZ Discussion Papers & WWZ Working Papers, Wirtschaftswissenschaftliches Zentrum (WWZ), Universität Basel

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