Master in Economics
Winter Term 2025/2026
Hyperinflations
Selection of topics
1. Cagan’s Classical Study on Hyperinflations (Cagan 1956)
2. Measuring Inflation Expectations and the Forward Rate (Frenkel 1977)
3. Instationarity, Cointegration and Cagan’s Money Demand Function (Taylor 1991)
4. The Money Supply-Inflation Link and Selfgenerating Money Supply Processes (Funke, Hall and Sola 1994)
5. Case Study: The German Hyperinflation 1922/23 (Holtfrerich 1980)
6. Select your Own Topic on Hyperinflations
Organization
- Each seminar participant has to choose one topic from the selection above. Credit points are granted for preparing a term paper and presenting the results in form of a power point presentation. Students are expected to rely on academic articles and to present the findings contained therein.
- Topics will be assigned to students on a first-come, first-served basis. Students should register using the form below, stating the desired topic. Each topic will only be awarded twice.
- Each student has to prepare and submit a term paper comprising at least 15 pages. The term paper is supposed to contain a cover page, a table of contents, a reference list (bibliography) and – where applicable – an appendix. There are no style requirements, however, margins, font size, spacing and so forth should be chosen appropriately. Deadline for paper submission is January 11, 2026. Please upload your seminar paper to the following website: Upload seminar paper .
- Each student needs to prepare his/her own seminar paper and a power point presentation. The presentation is supposed to last about 20 minutes and should be uploaded to the following website: Upload presentation .
- The seminar will take place in the form of a block course on October 13, 2025 (kick-off-meeting) and January 12, 2026 (presentations) from 6:00 p.m. to 7:30 p.m. in room STA2, Am Stadtgraben 9.
- The final grade is based on the term paper (80%) and on the presentation/participation during the seminar (20%). Please be aware that enrollment for the class should be carried out at the examination office (Prüfungsamt) for the early deadline of the winter term 2025/2026 (vorgezogener Termin). Please register for the class on Learnweb. You will find the enrollment key in due on our website.
- 6 Credit points can be obtained for this class (Master, PO 2015). Course language is English only.
- Topics will be supervised by Prof. Dr. Bohl. Students should send the outline and structure of the term paper before-hand via e-mail to Professor Dr. Martin T. Bohl so that the contents can be discussed.
Literature
Cagan, P (1956), The Monetary Dynamics of Hyperinflation, in: M Friedman (Hrsg.), Studies in the Quantity Theory of Money, Chicago, S. 25 – 117.
Frenkel, JA (1977), The Forward Exchange Rate, Expectations, and the Demand for Money: The German Hyperinflation, The American Economic Review 67, 653 – 670.
Funke, M, Hall, S and Sola, M (1994), Rational Bubbles during Poland's Hyperinflation: Implications and Empirical Evidence, European Economic Review 38, 1257 – 1276.
Holtfrerich, C-L (1980), Die deutsche Inflation 1914 – 1923, Berlin, New York: deGruyter.
Taylor, MP (1991), The Hyperinflation Model of Money Demand Revisited, Journal of Money, Credit and Banking 23, 327 – 351.
