Money and prices in models of bounded rationality in high inflation economies

Albert Marcet and Juan Pablo Nicolini

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

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
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://econ-papers.upf.edu/papers/875.pdf Whole Paper (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to econ-papers.upf.edu:443 (Bad file descriptor)

Related works:
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)
Working Paper: Money and Prices in Models of Bounded Rationality in High Inflation Economies (2004)
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:upf:upfgen:875

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).