01720cas a2200241 a 4500 AALejournalIMF001212 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850741 1018-5941 BD-DhAAL BD-DhAAL Braumann, Benedikt. Real Effects of High Inflation / Benedikt Braumann. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper revisits the question of the real effects of inflation, on the basis of the experience with 23 high inflation episodes in 17 countries. It finds strong indications that inflation had contractionary effects on a number of important macroeconomic variables, such as GDP, investment and employment. Moreover, high inflation led to a significant decline in real wages, a real depreciation and an improvement in external trade. These patterns are consistent with explanations that stress the transaction role of money, such as models with a cash-in-advance constraint. However, some observations are hard to reconcile with existing theory, especially the large magnitude of the fall in real wages.1. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/085 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/085/001.2000.issue-085-en.xml IMF e-Library