arXiv Open Access 2001

The mechanism of double exponential growth in hyper-inflation

Takayuki Mizuno Misako Takayasu Hideki Takayasu

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Abstrak

Analyzing historical data of price indices we find an extraordinary growth phenomenon in several examples of hyper-inflation in which price changes are approximated nicely by double-exponential functions of time. In order to explain such behavior we introduce the general coarse-graining technique in physics, the Monte Carlo renormalization group method, to the price dynamics. Starting from a microscopic stochastic equation describing dealers' actions in open markets we obtain a macroscopic noiseless equation of price consistent with the observation. The effect of auto-catalytic shortening of characteristic time caused by mob psychology is shown to be responsible for the double-exponential behavior.

Topik & Kata Kunci

cond-mat.stat-mech cond-mat.dis-nn q-fin.GN

Penulis (3)

Takayuki Mizuno

Misako Takayasu

Hideki Takayasu

Format Sitasi

APA MLA BibTeX

Mizuno, T., Takayasu, M., Takayasu, H. (2001). The mechanism of double exponential growth in hyper-inflation. https://arxiv.org/abs/cond-mat/0112441

Akses Cepat

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Informasi Jurnal

Tahun Terbit: 2001
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓