3 Lessons From Hyperinflationary Periods: References

:::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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• Abstract

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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