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The Correct Economic Interpretation of Rational Expectations

Year:    1995

Author:    Gersbach, Hans

Credit and Capital Markets – Kredit und Kapital, Vol. 28 (1995), Iss. 2 : pp. 221–226

Abstract

In a comment on my article, Wesche and Wierum criticize the derived relationship between money growth and inflation during accelerating inflation for a model with exponential money demand. However, their analysis has several flaws and the authors seem not to be aware of the economic content of rational expectations equilibria. A correct calculation and interpretation of their exercise fully supports the conclusions in my earlier paper.

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/ccm.28.2.221

Credit and Capital Markets – Kredit und Kapital, Vol. 28 (1995), Iss. 2 : pp. 221–226

Published online:    1995-02

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    6

Author Details

Gersbach, Hans

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