On the explosive nature of hyper-inflation data

Economics

Further details

On the explosive nature of hyper-inflation data - Empirical analyses of Cagan’s money demand schedule for hyperinflation 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