Money and Prices in Models of Bounded Rationality in High Inflation Economies

Albert Marcet and Juan Pablo Nicolini

No 217, Working Papers from Barcelona School of Economics

Abstract: This paper studies the short run correlation of inflation and money growth. We study whether a model of learning can do better than a model of rational expectations, we focus our study on countries of high inflation. We take the money process as an exogenous variable, estimated from the data through a switching regime process. We find that the rational expectations model and the model of learning both offer very good explanations for the joint behavior of money and prices.

Keywords: Inflation and money growth; switching regimes; quasi-rationality (search for similar items in EconPapers)
JEL-codes: D83 E17 E31 (search for similar items in EconPapers)
Date: 2005-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/217.pdf (application/pdf)

Related works:
Working Paper: Money and Prices in Models of Bounded Rationality in High Inflation Economies (2015)
Journal Article: Money and Prices in Models of Bounded Rationality in High Inflation Economies (2005)
Working Paper: Money and prices in models of bounded rationality in high inflation economies (2005)
Working Paper: Money and prices in models of bounded rationality in high inflation economies (2005)
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:bge:wpaper:217

Access Statistics for this paper

More papers in Working Papers from Barcelona School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().