The Debt-Inflation Channel of the German (Hyper)Inflation
利用1919-1923年德国通胀的新数字化数据，研究价格水平大幅上涨如何通过企业资产负债表传导至实体经济，发现通胀降低了实际债务负担和破产率，并影响企业就业。
This paper studies how a large increase in the price level is transmitted to the real economy through firm balance sheets. Using newly digitized macro- and micro-level data from the German inflation of 1919–1923, we show inflation led to a large reduction in real debt burdens and bankruptcies. Firms with higher nominal liabilities at the onset of inflation experienced a larger decline in interest expenses, a relative increase in their equity values, and higher employment during the inflation. The results are consistent with real effects of a debt-inflation channel that operates even when prices and wages are flexible.