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.
Original language | English |
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Article number | 109176 |
Number of pages | 3 |
Journal | Economics Letters |
Volume | 192 |
Early online date | 25 Apr 2020 |
DOIs | |
Publication status | Published - Jul 2020 |