2016
DOI: 10.1007/978-3-319-44512-0_7
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Competitive Equilibrium Hyperinflation Under Rational Expectations

Abstract: 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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Cited by 2 publications
(1 citation statement)
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“…A placebo ingested to reduce pain is effective because the individual expected it to be (see Flood, Lorence, Ding, McPherson, & Black, ). In the behavioral sciences, expectations are used as a construct of interest in multiple disciplines (e.g., Barbosa, Cunha, & Sallum, ; Capron, Norr, & Schmidt, ; Fişek et al, ). Perhaps best known is Vroom's Expectancy Theory, a model related to motivation, especially when applied to the workplace (Vroom, ).…”
Section: Introductionmentioning
confidence: 99%
“…A placebo ingested to reduce pain is effective because the individual expected it to be (see Flood, Lorence, Ding, McPherson, & Black, ). In the behavioral sciences, expectations are used as a construct of interest in multiple disciplines (e.g., Barbosa, Cunha, & Sallum, ; Capron, Norr, & Schmidt, ; Fişek et al, ). Perhaps best known is Vroom's Expectancy Theory, a model related to motivation, especially when applied to the workplace (Vroom, ).…”
Section: Introductionmentioning
confidence: 99%