TY  - JOUR
AU  - Buiter,Willem H.
TI  - A Fiscal Theory of Hyperdeflations?  Some Surprising Monetarist Arithmetic
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 52
PY  - 1985
Y2  - November 1985
UR  - http://www.nber.org/papers/t0052
L1  - http://www.nber.org/papers/t0052.pdf
N1  - Author contact info:
Willem H. Buiter
Citigroup Centre
Canada Square, Canary Wharf
London E14 5LB
UNITED KINGDOM
E-Mail: willembuiter@btinternet.com
AB  - The note mines an unsuspected lode in the Sargent-Wallace "Unpleasant Monetarist Arithmetic" deposit. While that model is shown to be incapable of generating hyperinflations as a result of large monetized public sector deficits, it can generate hyperdeflations or perhaps more accurately, the first stages of an unsustainable process of hyperdeflation. The drawing of policy conclusions is left as an exercise for the reader.
ER  -