Year: 1995
Author: Michaelis, Jochen
Credit and Capital Markets – Kredit und Kapital, Vol. 28 (1995), Iss. 3 : pp. 368–375
Abstract
Stability Problems in Hyperinflation Models - A Comment
The Zink-model endogenises the frequency of wage payments and analyses the implications for the dynamic behaviour of hyperinflation models. This comment shows how a slight modification of the Zink-model eliminates a shortcoming of traditional hyperinflation models: the high inflation equilibrium is stable, and, contrary to the literature, it has ‘correct’ comparative statics, i.e. a higher money financed budget deficit leads to a higher equilibrium inflation rate.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.28.3.368
Credit and Capital Markets – Kredit und Kapital, Vol. 28 (1995), Iss. 3 : pp. 368–375
Published online: 1995-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 8