Paper #244

Título:

Recurrent hyperinflations and learning

Autores:

Albert Marcet y Juan P. Nicolini

Fecha:

Noviembre 1995

Resumen:

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.

Palabras clave:

Hyperinflations, convertibility, stabilization plans, quasi-rationality

Códigos JEL:

D83, E17, E31

Área de investigación:

Macroeconomía y Economía Internacional

Publicado en:

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

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