Economics Working Papers

Permanent URI for this collection

https://hdl.handle.net/1794/49

This collection contains papers in the University of Oregon Economics Department Working Papers series. Papers in this series are also available on the department's web site at: http://econpapers.repec.org/paper/oreuoecwp/

Browse

Browsing Economics Working Papers by Author "Adam, Klaus"

Now showing 1 - 1 of 1
  • Thumbnail Image
    ItemOpen Access
    Are Stationary Hyperinflation Paths Learnable?
    (University of Oregon, Dept of Economics, 2003-03-17) Adam, Klaus; Evans, George W., 1949-; Honkapohja, Seppo, 1951-
    Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under adaptive learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the high-inflation steady state. The hyperinflationary paths are stable under learning if agents can utilize contemporaneous data. However, in an economy populated by a mixture of agents, some of whom only have access to lagged data, stable inflationary paths emerge only if the proportion of agents with access to contemporaneous data is sufficiently high.