Budget Deficits, Stability, and the Monetary Dynamics of Hyperinflation
通过引入货币市场调整滞后，解释了为何巨额预算赤字会导致恶性通货膨胀，并说明温和减赤为何无效，财政滞后可能破坏稳定。
Hyperinflationary processes usually occur in countries with extremely large budget deficits. In models of inflationary finance with rational expectations (e.g., Buiter [1987]), large budget deficits cannot lead to hyperinflation. The purpose of this paper is to reconcile the standard theoretical model with the stylized facts. It shows that by introducing a lag in the adjustment of the money market into the standard inflationary finance model, large budget deficits are indeed the main reason for hyperinflation. The paper also provides an explanation for the ineffectiveness of moderate reductions in the deficit in reducing inflation and argues that fiscal lags can be destabilizing. Copyright 1989 by Ohio State University Press.