Politická ekonomie 2009, 57(1):48-57 | DOI: 10.18267/j.polek.669

Dynamický model stability inflačného procesu na báze kvantitatívnej teórie peňazí

Jaroslav Husár, Karol Szomolányi
Ekonomická univerzita Bratislava.

Dynamic model of inflation stability based on quantity theory of money

In this paper the stability of an inflationary process is examined. A dynamic model of the inflation has been developed based on the quantity theory of money. Some theorists say that any rate of inflation other than zero is inherently instable. They say that as people become aware of the fact of continues inflation, however slow, they will anticipate inflation and this anticipation generates inflation. We showed that there exists a model, which helps us to understand that inflation is not necessarily explosive. We follow the ideas of Ph. Cagan.

Keywords: inflation, dynamic model, expected inflation, inflation process stability
JEL classification: C62, E31, E51

Published: February 1, 2009  Show citation

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Husár, J., & Szomolányi, K. (2009). Dynamic model of inflation stability based on quantity theory of money. Politická ekonomie, 57(1), 48-57. doi: 10.18267/j.polek.669
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