The conquest of South American inflation

Thomas Sargent, Noah Williams, Tao Zha

    Research output: Contribution to journalArticle

    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 languageEnglish (US)
    Pages (from-to)211-256
    Number of pages46
    JournalJournal of Political Economy
    Volume117
    Issue number2
    DOIs
    StatePublished - Apr 2009

    Fingerprint

    Stabilization
    Hyperinflation
    Inflation
    Divorce
    Conditional volatility
    Government deficits
    Maximum likelihood
    Money creation
    Hidden Markov model

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Sargent, T., Williams, N., & Zha, T. (2009). The conquest of South American inflation. Journal of Political Economy, 117(2), 211-256. https://doi.org/10.1086/599014

    The conquest of South American inflation. / Sargent, Thomas; Williams, Noah; Zha, Tao.

    In: Journal of Political Economy, Vol. 117, No. 2, 04.2009, p. 211-256.

    Research output: Contribution to journalArticle

    Sargent, T, Williams, N & Zha, T 2009, 'The conquest of South American inflation', Journal of Political Economy, vol. 117, no. 2, pp. 211-256. https://doi.org/10.1086/599014
    Sargent, Thomas ; Williams, Noah ; Zha, Tao. / The conquest of South American inflation. In: Journal of Political Economy. 2009 ; Vol. 117, No. 2. pp. 211-256.
    @article{10d77caf5d0544b584dde4b8fda57ef7,
    title = "The conquest of South American inflation",
    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",
    author = "Thomas Sargent and Noah Williams and Tao Zha",
    year = "2009",
    month = "4",
    doi = "10.1086/599014",
    language = "English (US)",
    volume = "117",
    pages = "211--256",
    journal = "Journal of Political Economy",
    issn = "0022-3808",
    publisher = "University of Chicago",
    number = "2",

    }

    TY - JOUR

    T1 - The conquest of South American inflation

    AU - Sargent, Thomas

    AU - Williams, Noah

    AU - Zha, Tao

    PY - 2009/4

    Y1 - 2009/4

    N2 - 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

    AB - 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

    UR - http://www.scopus.com/inward/record.url?scp=65949107320&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=65949107320&partnerID=8YFLogxK

    U2 - 10.1086/599014

    DO - 10.1086/599014

    M3 - Article

    VL - 117

    SP - 211

    EP - 256

    JO - Journal of Political Economy

    JF - Journal of Political Economy

    SN - 0022-3808

    IS - 2

    ER -