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Hyperinflation Pitfalls: Fundamentals Versus Bubbles

  • Fernando de Holanda Barbosa
Chapter
Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

Abstract

In the set-up of our hyperinflation model, in a joint paper with Sallum (Barbosa et al. 2006, thereafter BCS), we were very careful to avoid some traps that have plagued the literature on hyperinflation. In our model, hyperinflation is caused by fundamentals not by bubbles. We showed that a hyperinflation path would not be a competitive equilibrium outcome if the public deficit to be financed by issuing money were constant.

Keywords

Budget Constraint Equilibrium Solution Competitive Equilibrium Transversality Condition Money Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Barbosa, F. H. (2002). Hyperinflation: Inflation tax and economic policy regime. Brazilian Review of Econometrics, 22, 215–238.CrossRefGoogle Scholar
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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Fernando de Holanda Barbosa
    • 1
  1. 1.Getulio Vargas Foundation Graduate School of Economics (EPGE/FGV)Rio de JaneiroBrazil

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