Do countries that have had hyperinflation display lower cross-sectional inflation rates in the aftermath of hyperinflation? There has been abundant speculation but very little research on this topic. This paper shows that hyperinflations do have a significant long-term effect on subsequent inflation outcomes: countries that suffered hyperinflation tend to display rates of inflation that are at least 5 percentage points below the cross-sectional average.

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This paper documents a robust stylized facts in the relationship between money growth and inflation in Chile: inflation causes (precedes) money growth and not the other way around. This result does not depend on the sample period considered, the choice of monetary aggregate, the characterization of conditional second moments, or the introduction of inflation targets. A simple theoretical model is presented to motivate why inflation and money growth are nor necessarily related.

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This paper reviews central bank legislation in 24 countries in Latin America and the Caribbean during the 1990s. Using panel regressions, it finds a negative relationship between legal central bank independence (CBI) and inflation, using three alternative measures of CBI and after controlling for relevant macro variables. The result is robust to the inclusion of a broader indicator of structural reforms. The paper fails, however, to find a causal relationship running from CBI to inflation.

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his paper examines the output effects of monetary disinflation in a model with endogenous time-dependent pricing rules and imperfect credibility of the disinflation policy. We find that these features interact to generate an additional effect on top of the ones obtained with either endogenous time-dependent rules (Bonomo and Carvalho, 2003) or imperfect credibility (Ball, 1995) in isolation. This results in higher output costs of monetary disinflation.

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