arXiv Open Access 2024

The Debt-Inflation Channel of the German (Hyper-)Inflation

Markus K. Brunnermeier Sergio Correia Stephan Luck Emil Verner Tom Zimmermann

Lihat Sumber

Abstrak

This paper studies how a large increase in the price level is transmitted to the real economy through firm balance sheets. Using newly digitized macro- and micro-level data from the German inflation of 1919-1923, we show that inflation led to a large reduction in real debt burdens and bankruptcies. Firms with higher nominal liabilities at the onset of inflation experienced a larger decline in interest expenses, a relative increase in their equity values, and higher employment during the inflation. The results are consistent with real effects of a debt-inflation channel that operates even when prices and wages are flexible.

Topik & Kata Kunci

econ.GN

Penulis (5)

Markus K. Brunnermeier

Sergio Correia

Stephan Luck

Emil Verner

Tom Zimmermann

Format Sitasi

APA MLA BibTeX

Brunnermeier, M.K., Correia, S., Luck, S., Verner, E., Zimmermann, T. (2024). The Debt-Inflation Channel of the German (Hyper-)Inflation. https://arxiv.org/abs/2405.13296

Akses Cepat

Lihat di Sumber

Informasi Jurnal

Tahun Terbit: 2024
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓