ABSTRACT
S imi la r features can arise wi th excess of loss reinsurance, unless the
excess l imits are fully indexed (sections 3.4.2(d) and 3.4.4(c)).
7.3 Modelling inflation
(a) Characteristics of inflation. A s was seen in section 7.1(b), the
rate of inflat ion differs substantially from country to country and
from time to time. Over the per iod illustrated i n Figure 7.1.2, none
of the countries shown experienced an inflat ion rate of more than
25%. However , much higher rates of inflation, sometimes many
hundreds of per cent a year, and generally referred to as hyper-
inflation, have been experienced i n some countries i n recent years
(Israel, Argent ina , etc.) and, for example, i n G e r m a n y i n the years
fo l lowing the F i r s t W o r l d W a r .
