Paper #244

Títol:

Recurrent hyperinflations and learning

Autors:

Albert Marcet i Juan P. Nicolini

Data:

Novembre 1995

Resum:

This paper uses a model of boundedly rational learning to account for the observations of recurrent hyperinflations in the last decade. We study a standard monetary model where the fully rational expectations assumption is replaced by a formal definition of quasi-rational learning. The model under learning is able to match remarkably well some crucial stylized facts observed during the recurrent hyperinflations experienced by several countries in the 80's. We argue that, despite being a small departure from rational expectations, quasi-rational learning does not preclude falsifiability of the model and it does not violate reasonable rationality requirements.

Paraules clau:

Hyperinflations, convertibility, stabilization plans, quasi-rationality

Codis JEL:

D83, E17, E31

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

American Economic Review, 93, 5, (2003), pp. 1476-98

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