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Title: |
Test of Rationality of Adaptive Expectations
in the German Hyperinflation |
| Author: |
Noh, Inchul |
| Author
Affiliation: |
Korea Inst
Population & Health |
| Source: |
International Economic Journal, Spring 1988, v. 2, no. 1, pp. 39-52 |
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Publication Date: |
Spring 1988 |
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Abstract: |
The time series methodology casts some
doubt on Sargent-Wallace's joint hypothesis that expectations are
rational and the money supply is endogenous. It is to perform an
alternative test of whether their model is consistent with the data. The
procedure employed is basically to test the cross-equation restrictions
imposed by the rationality of expectations. In contrast of the previous
findings a key result of this procedure is that it provides empirical
support for their joint hypothesis. |
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