Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76367 
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper No. 936
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
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.
Subjects: 
indeterminacy
inflation
stability of equilibria
seigniorage
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.