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Mladenovic, Z. and Petrovic, P. (2010) Cagan’s Paradox and Money Demand in Hyperinflation: Revisited at Daily Frequency. Journal of International Money and Finance, 29, 1369-1384.
http://dx.doi.org/10.1016/j.jimonfin.2010.05.005

has been cited by the following article:

• TITLE: Cagan Effect and the Money Demand by Firms in China: A Nonlinear Panel Smooth Transition Approach

  AUTHORS: Fangping Peng, Kai Zhan, Yujun Lian

  KEYWORDS: Cagan Hypothesis, Panel Smooth Transition, Money Demand, Firm Level

  JOURNAL NAME: Journal of Mathematical Finance, Vol.5 No.2, May 5, 2015

  ABSTRACT: This paper examines the Cagan effect in China by using a panel smooth transition approach on the firm-level data. Our results reveal that the demand for money by firms relatively decreases for the high inflation period, because the firm anticipates further price increase that it seeks a substitute for money, supporting the presence of the Cagan effect in firms in China. A policy implication of our finding is that efficiently managing Inflation Expectation is necessary in China in stimulating the economy through expansion of the money supply.