Inflation and currency depreciation in Germany. 1920-1923: a dynamic model of prices and the exchange rate.: An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1995. The length of the article is 6206 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: This paper presents a dynamic model of the German hyperinflation, explaining prices, the exchange rate and the money supply. In the model estimated simultaneously, the nominal exchange rate is allowed to diverge from Purchasing Power Parity in the short run, the monetary approach to exchange rate determination and the quantity theory of money are assumed to be valid in the long run, the dynamic adjustment of prices and the exchange rate to monetary disturbances is made explicit, and currency substitution between domestic and foreign currency is introduced explicitly. The problems of the autocorrelation of the residuals of the money demand function found in previous studies is resolved, the fit of inflation and exchange rate changes is very satisfactory, and the speed of adjustment of the exchange rate to monetary disturbances is found to be much higher than for prices. (Printed by permission of the publisher.)

Citation Details
Title: Inflation and currency depreciation in Germany. 1920-1923: a dynamic model of prices and the exchange rate.
Author: Giuseppe Tullio
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1995
Publisher: Ohio State University Press
Volume: v27 Issue: n2 Page: p350(13)

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