Sargent, Thomas; Williams, Noah; Zha, Tao - Federal Reserve Bank of Atlanta - 2006
We infer determinants of Latin American hyperinflations and stabilizations by using the method of maximum likelihood to … estimate a hidden Markov model that potentially assigns roles both to fundamentals in the form of government deficits that are …, sequences of shocks that trigger temporary episodes of expectations driven hyperinflations, and occasional superficial reforms …