3 Lessons From Hyperinflationary Periods: References

These major lessons can help managers, consumers, and societies better cope with and more successfully navigate their current inflationary challenges.


This content originally appeared on HackerNoon and was authored by Hyper Inflation

:::info Authors:

(1) Mark Bergen, Carlson School of Management, University of Minnesota;

(2) Thomas Bergen, Carlson School of Management, University of Minnesota;

(3) Daniel Levy, Department of Economics, Bar-Ilan University, Department of Economics, Emory University, and ISET at Tbilisi State University, 0108 Tbilisi, Georgia;

(4) Rose Semenov, Carlson School of Management, University of Minnesota.

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  1. Reduce the company’s costs of changing prices (“menu cost”)
  2. Reduce customers’ “stress of uncertainty”
  3. Reduce societal fears of “shrinkflation, greedflation, and doubtflation"

References

Cavallo, Alberto, Mariana Cal, and Carla Larangeira (2020), “Automercados Plaza’s: Surviving Venezuela’s Hyperinflation,” Harvard Business School Case Study, 721014-PDF-ENG.

\ Hanke, Steve and Nicholas Krus (2013), “World Hyperinflations,” in Handbook of Major Events in Economic History, Edited by Randall Parker and Robert Whaples (London: Routledge).

\ Levy, Daniel, Mark Bergen, Shantanu Dutta, and Robert Venable (1997), “The Magnitude of Menu Costs: Direct Evidence from Large US Supermarket Chains,” Quarterly Journal of Economics 112, 791–825. https://doi.org/10.1162/003355397555352.

\ Levy, Daniel, Shantanu Dutta, Mark Bergen, and Robert Venable (1998), “Price Adjustment at Multi-product Retailers,” Managerial and Decision Economics 19, 81–120. https://doi.org/10.1002/(SICI)1099-1468(199803)19:2<81::AIDMDE867>3.0.CO;2-W.

\ Moss, David, and Julio Rotemberg (1998), “German Hyperinflation of 1923,” Harvard Business School Case Study, 798048-PDF-ENG.

\ Snir, Avichai, Haipeng (Allan) Chen, and Daniel Levy (2021), “Stuck at Zero: Price Rigidity in a Runaway Inflation,” Economics Letters 204(C), July, 109885. https://doi.org/10.1016/j.econlet.2021.109885.

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:::info This paper is available on arxiv under CC BY 4.0 DEED license.

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This content originally appeared on HackerNoon and was authored by Hyper Inflation


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