Discussion of ‘ The Conquest of South American Inflation , ’ by T . Sargent , N . Williams , and T . Zha ∗ Mart́ın Uribe
نویسندگان
چکیده
This is an excellent paper. It identifies factors explaining episodes of high inflation and inflation stabilization in 5 Latin American countries during the postwar period. A central finding of the paper, on which I will focus most of my discussion, is that the majority of the observed episodes of hyperinflation were driven by escape dynamics in inflation expectations, or inflation expectations going out of control. Table 1 summarizes this result. The authors identify seven hyperinflations in the data, of which five are estimated to
منابع مشابه
The Conquest of South American Inflation
We infer determinants of Latin American hyperinflations and stabilizations by using the method of maximum likelihood to estimate a hidden Markov model that potentially 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. Our maximum likelihoo...
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