Document details

Competitive equilibrium hyperinflation under rational expectations

Author(s): Sallum, Elvia Mureb ; Barbosa, Fernando de Holanda ; Cunha, Alexandre Barros da

Date: 2008

Persistent ID: http://hdl.handle.net/10438/528

Origin: Oasisbr

Subject(s): Hyperinflation; Rational expectations; Competitive equilibrium; Fiscal crisis; Economia; Expectativas racionais (Teoria econômica); Modelos econométricos; Inflação; Economia; Hyperinflation; Hyperinflation; Rational expectations; Rational expectations; Competitive equilibrium; Competitive equilibrium; Fiscal crisis; Fiscal crisis; Economia; Economia; Expectativas racionais (Teoria econômica); Expectativas racionais (Teoria econômica); Modelos econométricos; Modelos econométricos; Inflação; Inflação; Economia; Economia


Description

This paper shows that a competitive equilibrium model, where a representative agent maximizes welfare, expectations are rational and markets are in equilibrium can account for several hyperinflation stylized facts. The theory is built by combining two hypotheses, namely, a fiscal crisis that requires printing money to finance an increasing public deficit and a predicted change in an unsustainable fiscal regime.

Document Type Journal article
Language English
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