Georgoutsos, Dimitris; Kouretas, Georgios - In: Applied Financial Economics 14 (2004) 1, pp. 29-41
This paper re-examines the Cagan model of German hyperinflation during the 1920s under the twin hypotheses that the system contains variables that are I(2) and that a linear trend is required in the cointegrating relations. Using the recently developed I(2) cointegration analysis developed by...