اجتناب از تورم شدید: شواهدی از یک اقتصاد آزمایشگاهی

Hyperinflation results from the creation and injection of fiat money into the economy. Using laboratory methods, this paper examines conditions under which fiat money can serve as a medium of exchange in a finite horizon economy while the government is active in the markets for goods. Consistent with the rational expectations hypothesis, issuing new fiat currency does not stabilize a hyperinflation; however, restricting government spending to the amount of tax revenue or reverting to backed money does. These findings are consistent with previous studies of historical data; thus this work confirms those findings from an alternative data source, the laboratory.