Processes of Evolutionary Self-Organization in High Inflation Experiences

TOHMÉ, FERNANDO; DABÚS, CARLOS; LONDON, SILVIA

New Tools of Economic Dynamics

Springer

Lugar: Berlin; Año: 2005; p. 357 - 371

We study some features of the processes that have generated high inflation in Latin- American countries. The statistical evidence shows that these inflationary experiences are fractional brownian noises. Several authors showed that self-organized criticality (SOC) processes may constitute the best explanation of the origin of such noises. But this hypothesis requires that the underlying structure remains time invariant. We conjecture, instead, that the economic structures evolve in time being, at each stage of their evolution, self-organized structures. We find that such ESO (evolutionary self-organized) processes still generate fractional brownian noises. Thus, they seem to provide a better explanation for the economic phenomenon of high inflation.