Expectations in an open economy hyperinflation: Evidence from Germany 1921–23

Reghezza, Alessio, Seghezza, Elena and Thornton, John (2020) Expectations in an open economy hyperinflation: Evidence from Germany 1921–23. Economics Letters, 192. ISSN 0165-1765

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Abstract

We reconsider the Beladi et al. (1993) technique to measure expectations in hyperinflation episodes by allowing money to be substitutable with foreign assets as well as goods. We determine new correctness conditions for adaptive and rational expectations formation in this context and show that, taking into account these conditions, the data for the German hyperinflation of the 1920s is consistent with rational expectation formation.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Depositing User: LivePure Connector
Date Deposited: 29 Apr 2020 00:03
Last Modified: 25 Aug 2020 23:57
URI: https://ueaeprints.uea.ac.uk/id/eprint/74870
DOI: 10.1016/j.econlet.2020.109176

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