Inflation regimes and hyperinflation: a Post-Keynesian/structuralist typology.

The article develops a typology of inflation regimes grounded in Post-Keynesian and structuralist economic theories, identifying three main regimes—low, moderate, and high inflation—alongside a qualitative definition of hyperinflation. Each regime is characterized by distinct institutional frameworks and inflation dynamics, with distributive conflict between workers and capitalists playing a central role throughout. The low inflation regime features stable inflation driven by wage and markup negotiations, while the moderate regime is marked by institutionalized wage indexation on past inflation, creating inertia. The high inflation regime involves widespread indexation, including on exchange rates, often leading to dollarization and economic instability. Hyperinflation is described as a short-term phenomenon arising from the rejection of domestic currency, driven by anticipations of exchange rate depreciation and external vulnerabilities, and is linked to political and macroeconomic crises. The typology emphasizes that transitions between regimes require institutional changes and that economic policies must be tailored to the specific inflationary context and its inherent fragilities.