WebDec 1, 1996 · Abstract. Using a variant of the Cagan model with rational expectations, this paper shows that expected stabilization can result in a budget deficit in excess of the maximum inflation tax. A cap ... WebIn his classic work, Phillip Cagan (1956) studied seven of the eight hyperinflations that took place between 1920 and 1946.2 Cagan defined a hyperinflation as beginning in the month inflation first exceeds 50 percent (per month) and as ending in the month before the monthly inflation rate drops below 50 percent for at least a year.
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WebCagan’s specification for velocity was v(i) = αi where α > 0. Since the nominal interest rate is the real interest rate plus expected inflation, i t = r t +πe t (the ‘Fisher equation’), we can write m t −p t = c t −αr t −απ e t Since Cagan is interested in episodes of hyperinflation … WebJul 1, 1975 · The author is indebted to Professors Philip Cagan and Phoebus Dhrymes for helpful comments. The views expressed in this paper are those of the author and not necessarily those of the IMF. View full text
WebFeb 1, 2005 · Cointegration and Cagan’s Model of Hyperinflation under. Rational Expectations. J ournal of Money, Credit and Banking, 25, 350-360. Engsted, T. (1994). WebDec 7, 2024 · In other words, hyperinflation is extremely rapid inflation. Generally, inflation is termed hyperinflation when the rate of inflation grows at more than 50% a month. …
WebChristiano, Lawrence J, 1987. "Cagan's Model of Hyperinflation under Rational Expectations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 33-49, February. Salemi, Michael K & Sargent, Thomas J, 1979.
Web2Phillip Cagan [1, 25], for example, defines hy-perinflation as beginning in that month wherein the rise in prices exceeds 50 per cent, and does not rule out a rise in prices at a rate below 50 per cent per month for the intervening months. price level was 347 times greater than the rise in the money supply. Hyperinflation puts great upward ...
WebCagan - The monetary dynamics of hyperinflation. Adriana Navarro. See Full PDF. Download PDF. See Full PDF. marti sorolla cooperativaCagan's work focused on monetary policy and the control of inflation. Cagan has published over 100 books, journal articles, reviews, reports, and pamphlets on these and other topics in macroeconomics. He is perhaps best known for Determinants and Effects of Changes in the Stock of Money, 1875–1960, a work that sought to identify the "causal relationships between changes in money, prices and output." The book, part of the NBER series that contained Milton … marti spacWebCagan, P. (1956) The Monetary Dynamics of Hyperinflation. In: Friedman, M., Ed., Studies in the Quantity Theory of Money, The University of Chicago Press, Chicago, 25-117. has … data postedWebJun 1, 1998 · The results indicate that the Cagan model provides a valid description of money demand during the Chinese and Serbian hyperinflations, but not during the Hungarian hyperinflation. However, in the former two cases money demand shocks account for a substantial part of the variation in real balances. martissant7no39Web"Cagan's Model of Hyperinflation under Rational Expectations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 33-49, February. Salemi, Michael K & Sargent, Thomas J, 1979. marti spencerWebOct 18, 2016 · According to Cagan’s definition hyperinflation starts in a month when the price level increases at least by 50 % and it ends when the price level drops below 50 % and stays there by at least one year. This was Cagan’s empirical criteria to select episodes of hyperinflation. Using this definition Hanke and Krus (2013) were able to identify ... datapotWebHyperinflation is an extremely rapid rise in the general level of prices of goods and services. It typically lasts a few years or in the most extreme cases much less before … marti spittell