Global Bifurcations, Credit Rationing and Recurrent Hyperinflations
This paper proposes an alternative explanation to recurrent hyperinflations other than bounded rationality by explicitly considering the global dynamics of an economy with credit market frictions. In this paper we show that hyperinflations are self-generated and are manifestations of the underlying global dynamic properties of an economy with perfect foresight rational agents that face credit rationing. Moreover, we found that economies that are more credit constrained are more likely to experience recurrent hyperinflations.
|Date of creation:||Dec 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +34 93 542-1222
Fax: +34 93 542-1223
Web page: http://www.barcelonagse.eu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Beatrix Paal, 2000. "Destabilizing effects of a successful stabilization: a forward-looking explanation of the second Hungarian hyperinflation," Economic Theory, Springer, vol. 15(3), pages 599-630.
- Pintus, Patrick & Sands, Ducan & De Vilder, Robin, 1996.
"On the transition from local regular to global irregular fluctuations,"
CEPREMAP Working Papers (Couverture Orange)
- Pintus, Patrick & Sands, Duncan & de Vilder, Robin, 2000. "On the transition from local regular to global irregular fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 247-272, February.
- P. Pintus & D. Sands & R. de Vilder, 1998. "On the transition from local regular to global irregular fluctuations," THEMA Working Papers 98-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Pintus, P. & Sands, D. & de Vilder, R., 1998. "On the Transition from Local Regular to Global Iregular Fluctuations," Papers 9818, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Patrick Pintus & Ducan Sands & Robin De Vilder, 1998. "On the Transition from Local Regular to Global Irregular Fluctuations," Working Papers 98-54, Centre de Recherche en Economie et Statistique.
- Albert Marcet & Juan P. Nicolini, 1995.
"Recurrent hyperinflations and learning,"
Economics Working Papers
244, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2001.
- Bental, B. & Eckstein, Z., 1988.
"The Dynamics Of Inflation With Constant Deficit Under Expected Regime Change,"
35-88, Tel Aviv.
- Bental, Benjamin & Eckstein, Zvi, 1990. "The Dynamics of Inflation with Constant Deficit under Expected Regime Change," Economic Journal, Royal Economic Society, vol. 100(403), pages 1245-60, December.
- William A. Brock & Cars H. Hommes, 1997.
"A Rational Route to Randomness,"
Econometric Society, vol. 65(5), pages 1059-1096, September.
- Evans, Jean Lynne & Yarrow, George Keith, 1981. "Some Implications of Alternative Expectations Hypotheses in the Monetary Analysis of Hyperinflations," Oxford Economic Papers, Oxford University Press, vol. 33(1), pages 61-80, March.
- Williamson, Stephen D., 1986.
"Costly monitoring, financial intermediation, and equilibrium credit rationing,"
Journal of Monetary Economics,
Elsevier, vol. 18(2), pages 159-179, September.
- Stephen D. Williamson, 1984. "Costly Monitoring, Financial Intermediation, and Equilibrium Credit Rationing," Working Papers 583, Queen's University, Department of Economics.
- Bruce D. Smith & John H. Boyd, 1998. "Capital market imperfections in a monetary growth model," Economic Theory, Springer, vol. 11(2), pages 241-273.
- Gomis-Porqueras, Pere & Haro, Alex, 2003.
"Global dynamics in macroeconomics: an overlapping generations example,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 27(11-12), pages 1941-1959, September.
- Gomis-Porqueras, Pere & Haro, Alex, 2003. "Global dynamics in macroeconomics: an overlapping generations example," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11), pages 1941-1959.
- de Vilder, Robin, 1996. "Complicated Endogenous Business Cycles under Gross Substitutability," Journal of Economic Theory, Elsevier, vol. 71(2), pages 416-442, November.
When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:239. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar)
If references are entirely missing, you can add them using this form.