The aim of this paper is to clarify the failure of the Cagan model with perfect foresight, and to draw new axes for the investigation of monetary hyperinflation analysis. Firstly, the paper evaluates the relevance of the Cagan ad hoc model with perfect foresight as a theoretical framework for...

This article highlights the strict association met in the literature between the adaptive expectations assumption and the correct running of the monetary model of hyperinflation. A complete resolution of the model is carried out under the adaptive expectations hypothesis. It is shown that the...

The Cagan monetary model of hyperinflation has a relatively simple structure and a rich set of solutions. However, the wealth of possible solutions of this model does not constitute an asset for it. The introduction of rational expectations into the model was often at the origin of these...

The aim of this paper is to evaluate the importance of the issue of the loss of an independent monetary policy in the case of officially euroized Montenegro. We examine the extent to which the monetary policy of the European Central Bank, which is set according to the economic conditions...

This paper deals with the problem of vulnerability of developing countries and their resilience capacity with respect to external shocks. The analysis particularly considers the countries of Latin America and Sub-Saharan Africa. Although the transmission risks of the 2007 financial crisis were...

Cet article explore la question de la convergence réelle en termes de compétitivités internationales parmi les membres de la zone euro et de la zone CFA qui repose sur l’euro. L’objectif est d’apprécier l’importance de la perte de l’instrument du taux de change pour les différents...

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La crise des finances publiques dans les pays du groupe des « PIGS », portait la menace potentielle d’hyperinflation. Mais la vigilance de la BCE est là pour bloquer l’option d’un financement monétaire des déficits publics.

The paper emerges from the failure of the traditional models of hyperinflation with rational expectations or perfect foresight. Using the insights from two standard optimizing monetary settings the paper shows that the possibility of perfect foresight monetary hyperinflation paths depends...