Abstract

SZYBISZ, Martín A  and  SZYBISZ, Leszek. Universality of the behavior at the final stage of hyperinflation episodes in economy. An. AFA [online]. 2015, vol.26, n.3, pp.142-147. ISSN 0327-358X.

A model to describe the dynamics of episodes of hyperinflation based on collective "adaptive inflation expectations" with a positive nonlinear feedback has been proposed a couple of years ago. In such a formalism it is assumed that the velocity of the growth rate r(t) of the logarithm of the cumulated price index p(t) obeys a power law leading to a finite-time singularity at a critical time t_c, which is a signature for an economic crash. In the frame of that model, the time series of r(t) and p(t) for t close to t_c were examined simultaneously in the cases of severe episodes of hyperinflation. It was found that under such conditions the economic systems evolve with a common exponent  β of the power law. The result for  β is very close to the critical value β_c =1, which leads to a logarithmic divergence of p(t) at t_c. This logarithmic singularity is satisfactorily tested.

Keywords : Singularity theory; Interdisciplinary applications of physics; Econophysics; Social systems.

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