RATIONAL AND ADAPTIVE EXPECTATIONS IN THE PRESENT VALUE MODEL OF HYPERINFLATION

Authors
BELADI H CHOUDHARY MAS PARAI AK
Citation
H. Beladi et al., RATIONAL AND ADAPTIVE EXPECTATIONS IN THE PRESENT VALUE MODEL OF HYPERINFLATION, Review of economics and statistics, 75(3), 1993, pp. 511-514
Citations number
13
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics
Journal title
Review of economics and statistics → ACNP
ISSN journal
00346535
Volume
75
Issue
3
Year of publication
1993
Pages
511 - 514
Database
ISI
SICI code
0034-6535(1993)75:3<511:RAAEIT>2.0.ZU;2-B
Abstract
We apply Chow's (1989) technique to the present value model of hyperin flation under rational and adaptive expectation hypotheses. We use the monthly data on price and money supply of Germany (1921:5-1923:8), Hu ngary (1921:10-1924:2) and Poland (1922:1-1924:1). Our test results sh ow that the German data are consistent with the adaptive expectations hypothesis and the Hungarian data are consistent with the rational exp ectations hypothesis. The Polish data, however, do not support either of the two hypotheses.