Sobre teoría monetaria en alta inflación

Abstract

The object of this paper is to analyze the working of the monetary market in a high inflation economy understanding by high inflation a situation where the rate of growth of prices (25-30% annual) is higher than the general level of interest rates. It follows that the monetary market, to a large extent, functions with negative real rates of interest. The paper is divided in three parts. The first part consist of and explanation of the theory of liquidity preference and the new quantity theory, approach in so far as they are useful in the study of the economy in question. The second includes a simplified analysis of the monetary market, with particular reference to the demand for real cash balances. The third part consist of, the extent to which the liquidity preference and the new quantity theory's are applicable to the study of the economy in question.