Discussion Paper

No. 2008-9 | April 01, 2008
On the Explosive Nature of Hyper-Inflation Data

Abstract

Empirical analyses of Cagan’s money demand schedule for hyper-inflation have largely ignored the explosive nature of hyper-inflationary data. It is argued that this contributes to an (i) inability to model the data to the end of the hyper-inflation, and to (ii) discrepancies between “estimated” and “actual” inflation tax. A simple solution to these issues is found by replacing the conventional measure of inflation by the cost of holding money.

Paper submitted to the special issue "Using Econometrics for Assessing Economic Models" edited by Katarina Juselius.

Data Set

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The data set for this article can be found at: http://hdl.handle.net/1902.1/13722

JEL Classification

C32 E41

Cite As

Bent Nielsen (2008). On the Explosive Nature of Hyper-Inflation Data. Economics Discussion Papers, No 2008-9, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2008-9

Assessment



Comments and Questions


Anonymous - Referee Report
April 11, 2008 - 13:58

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Bent Nielsen - Response to Referee Report
June 17, 2008 - 16:54

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Anonymous - Invited Reader Report
May 20, 2008 - 09:59

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Bent Nielsen - Response to Invited Reader Report
June 17, 2008 - 16:56

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Anonymous - Referee Report
May 22, 2008 - 14:44

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Anonymous - Response to Referee Report
June 17, 2008 - 16:58

see attached file