The conquest of South American inflation

Thomas Sargent; Noah Williams; Tao Zha

doi:10.1086/599014

The conquest of South American inflation

Thomas Sargent, Noah Williams, Tao Zha

Research output: Contribution to journal › Article › peer-review

Abstract

We infer determinants of Latin American hyperinflations and stabilizations by using the method of maximum likelihood to estimate a hidden Markov model that assigns roles both to fundamentals in the form of government deficits that are financed by money creation and to destabilizing expectations dynamics that can occasionally divorce inflation from fundamentals. Levels and conditional volatilities of monetized deficits drove most hyperinflations and stabilizations, with

Original language	English (US)
Pages (from-to)	211-256
Number of pages	46
Journal	Journal of Political Economy
Volume	117
Issue number	2
DOIs	https://doi.org/10.1086/599014
State	Published - Apr 2009

ASJC Scopus subject areas

Economics and Econometrics

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10.1086/599014

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The conquest of South American inflation

Abstract

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