Are stationary hyperinflation paths learnable?

  • Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under adaptive learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the high-inflation steady state. The hyperinflationary paths are stable under learning if agents can utilize contemporaneous data. However, in an economy populated by a mixture of agents, some of whom only have access to lagged data, stable inflationary paths emerge only if the proportion of agents with access to contemporaneous data is sufficiently high. JEL Klassifikation: C62, D83, D84, E31

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Metadaten
Author:Klaus AdamORCiDGND, George W. Evans, Seppo Honkapohja
URN:urn:nbn:de:hebis:30-10663
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2004,15
Series (Serial Number):CFS working paper series (2004, 15)
Document Type:Working Paper
Language:English
Year of Completion:2004
Year of first Publication:2004
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2005/06/13
Tag:Indeterminacy; inflation; seigniorage; stability of equilibria
GND Keyword:Münzgewinn; Hyperinflation
HeBIS-PPN:224172131
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht