Open Access Journal Article

A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period

by Yair Barak a,* orcid
a
Cohn Institute for the History and Philosophy of Science and Ideas, Tel Aviv University, Tel Aviv, Israel
*
Author to whom correspondence should be addressed.
JEA  2023 2(2):24; https://doi.org/10.58567/jea02020003
Received: 5 March 2023 / Accepted: 31 March 2023 / Published Online: 2 April 2023
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Abstract

A high inflation period of seven years (1978-1985) in Israel, which turned into a hyperinflation, puzzled Israeli economists, who tried to understand its causes and mechanisms. As a result, they provided fourteen different explanations. Although all of the explanations were based on the same data, the researchers’ conclusions were either different or contradictory. This situation provides a virtual laboratory for the study of the ways and methods of economic thought; it is a classical Ceteris patribus situation. This laboratory further raises other subjects and questions. Are there principal differences between the economists' explanations? Is it possible to classify these differences? How do economic explanations for inflation differ from non-economic ones? In this article, I classified thirteen economic studies and one non-economic study into five clusters. This was the methodological tool used to inquire into the economic thought in this virtual laboratory.

Keywords: Inflation; Hyperinflation; Deficit; Rational expectations; Indexation; Economic theory; Economic evidence;
Copyright: © 2023 by Barak. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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APA Style
Barak, Y. (2023). A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period. Journal of Economic Analysis, 2(2), 24. doi:10.58567/jea02020003
ACS Style
Barak, Y. A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period. Journal of Economic Analysis, 2023, 2, 24. doi:10.58567/jea02020003
AMA Style
Barak Y. A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period. Journal of Economic Analysis; 2023, 2(2):24. doi:10.58567/jea02020003
Chicago/Turabian Style
Barak, Yair 2023. "A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period" Journal of Economic Analysis 2, no.2:24. doi:10.58567/jea02020003

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ACS Style
Barak, Y. A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period. Journal of Economic Analysis, 2023, 2, 24. doi:10.58567/jea02020003
AMA Style
Barak Y. A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period. Journal of Economic Analysis; 2023, 2(2):24. doi:10.58567/jea02020003
Chicago/Turabian Style
Barak, Yair 2023. "A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period" Journal of Economic Analysis 2, no.2:24. doi:10.58567/jea02020003
APA style
Barak, Y. (2023). A Virtual Economics Laboratory: What Generated High Inflation? 14 Different Explanations to One Inflation Period. Journal of Economic Analysis, 2(2), 24. doi:10.58567/jea02020003

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