Hyperinflation and Stabilisation: Cagan Revisited
用理性预期的卡甘模型变体，说明预期稳定可能导致预算赤字超过最大通胀税；通过限制赤字降低通胀预期、提高实际余额，从而增加通胀税收益。研究扩展了Drazen和Helpman的工作，引入随机预算过程并运用期权定价理论，利用货币需求半弹性参数估计最大可行实际赤字。
Using a variant of the Cagan model with rational expectations, this paper shows that expected stabilisation can result in a budget deficit in excess of the maximum inflation tax. A cap on the deficit dampens inflation expectations and raises real balances thus increasing the yield of the inflation tax for any given rate of inflation. This study extends the work of Drazen and Helpman (1990) by including a stochastic budgetary process and using option pricing theory. It uses parameter values of the semi‐elasticity of demand for money to provide estimates of the maximum viable real deficit.