ABSTRACT
Chapter 6 examines a series of hyperinflation or high inflation in an “age of inflation” from the 1970s: Bolivia, Brazil, and Argentina in Latin America, and Israel and Turkey in the Middle East. The stories of Bolivia, Brazil, Argentina, Israel, and Turkey discussed in the chapter all show how a poorly structured economy, an unsound economic institution, or mismanagement in macroeconomic policy could trap an economy in hyperinflation or chronic high inflation if public inflation expectations could not be stabilized. Chile, Nicaragua, and Peru in Latin America in the 1970s and 1980s reveal how hyperinflation broke out in unsettled societies, and Zaïre (Congo) and Angola in Africa in the 1990s in failing states.
