Are stationary hyperinflation paths learnable?

Arbeitspapier

Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under adaptive learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the high-inflation steady state. The hyperinflationary paths are stable under learning if agents can utilize contemporaneous data. However, in an economy populated by a mixture of agents, some of whom only have access to lagged data, stable inflationary paths emerge only if the proportion of agents with access to contemporaneous data is sufficiently high.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper ; No. 2004/15

Classification and Topics

• Classification: Wirtschaft ; Existence and Stability Conditions of Equilibrium ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Expectations; Speculations ; Price Level; Inflation; Deflation
• Subject: Indeterminacy ; inflation ; stability of equilibria ; seigniorage ; Hyperinflation ; Münzgewinn ; Inflationserwartung ; Lernprozess ; Theorie ; Hyperinflation ; Münzgewinn ; Inflationserwartung ; Lernprozess ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Adam, Klaus ; Evans, George W. ; Honkapohja, Seppo
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/25439
• URN: urn:nbn:de:hebis:30-10663
• Last update: 10.03.2025, 11:42 AM CET