EconPapers    
Economics at your fingertips  
 

The Conquest of South American Inflation

Thomas Sargent (), Noah Williams () and Tao Zha ()

Journal of Political Economy, 2009, vol. 117, issue 2, 211-256

Abstract: We infer determinants of Latin American hyperinflations and stabilizations by using the method of maximum likelihood to estimate a hidden Markov model that assigns roles both to fundamentals in the form of government deficits that are financed by money creation and to destabilizing expectations dynamics that can occasionally divorce inflation from fundamentals. Levels and conditional volatilities of monetized deficits drove most hyperinflations and stabilizations, with a notable exception in Peru, where a cosmetic reform of the type emphasized by Marcet and Nicolini occurred. (c) 2009 by The University of Chicago. All rights reserved.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (87) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/599014 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The conquest of South American inflation (2006) Downloads
Working Paper: The Conquest of South American Inflation (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:117:y:2009:i:2:p:211-256

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2019-08-20
Handle: RePEc:ucp:jpolec:v:117:y:2009:i:2:p:211-256