Inflation in the aftermath of financial crises
Kaehler J, Weber CS (2023)
Publication Language: English
Publication Type: Journal article
Publication year: 2023
Journal
Book Volume: 128
Pages Range: 1-12
Article Number: 106512
DOI: 10.1016/j.econmod.2023.106512
Abstract
There has been a plethora of financial crises in the past decades. One of the main economic questions is what effects these financial crises have. Previous studies have mainly analysed the effects on GDP growth. However, there is still a gap in analysing the effect of financial crises on inflation. This study tries to fill this gap by employing a large panel data set on financial crises including countries from all over the world. The empirical analysis confirms the conjecture that banking and currency crises lead to higher inflation rates. After controlling for other causes of inflation, we find an economically and statistically significant impact of banking and currency crises on inflation. Countries that have experienced a banking or currency crisis tend to have higher inflation rates in the medium term. Furthermore, sovereign debt crises also raise inflation rates.
Involved external institutions
France (FR)How to cite
APA:
Kaehler, J., & Weber, C.S. (2023). Inflation in the aftermath of financial crises. Economic Modelling, 128, 1-12. https://doi.org/10.1016/j.econmod.2023.106512
MLA:
Kaehler, Juergen, and Christoph S. Weber. "Inflation in the aftermath of financial crises." Economic Modelling 128 (2023): 1-12.
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