On high inflation and the allocation of resources

• 成果类型: Article
• 署名作者: Tommasi, M
• 署名单位: Universidad de San Andres Argentina; University of California System; University of California Los Angeles
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(99)00038-0
• 发表日期: 1999
• 页码: 401-421
• 关键词: inflation; search; inefficiencies

摘要

This paper formalizes some of the disruptive effects of inflation on the organization of markets. Rapid inflation induces buyers to speed up purchases, which thus inhibits the selection of more adequate trading partners through search. This blurs distinctions across firms of different productivities and leads to resource misallocations. As inflation causes efficient and inefficient firms to be less distinguishable, the incentives to engage in cost reduction are dampened and lower growth results. The model could provide a rationale for the large number of bankruptcies and large turnover rates following successful inflation stabilization programs, like those of Israel, Bolivia and Argentina. (C) 1999 Published by Elsevier Science B.V. All rights reserved.