Competitive equilibrium hyperinflation under rational expectations

被引:0
|
作者
Fernando H. Barbosa
Alexandre B. Cunha
Elvia Mureb Sallum
机构
[1] Getulio Vargas Foundation,Graduate School of Economics
[2] IBMEC Business School,Institute of Mathematics and Statistics
[3] University of São Paulo,undefined
[4] Cidade Universitária,undefined
来源
Economic Theory | 2006年 / 29卷
关键词
Hyperinflation; Rational expectations; Competitive equilibrium; Fiscal crisis; E31; E42; E63;
D O I
暂无
中图分类号
学科分类号
摘要
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.
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页码:181 / 195
页数:14
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