TESTING FOR RATIONAL BUBBLES WITH EXOGENOUS OR ENDOGENOUS FUNDAMENTALS The German Hyperinflation Once More
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چکیده
The presence of rational price bubbles during the German hyperinflation is tested under two different structural assumptions on the money process. If the money supply is constrained to be exogenous to the current inflation rate, the hypothesis of no bubble can be rejected. However, this is no longer found to be true when a feedback rule from inflation to money creation is allowed. The analysis contradicts previous results presented in the literature.
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تاریخ انتشار 2002