title={The ends of four big inflations},

author={Sargent, Thomas J},

booktitle={Inflation: Causes and effects},

editor = {Hall, Robert E}

editor = {Hall, Robert E},

pages={41--98},

year={1982},

publisher={University of Chicago Press}

- [Aakash Gupta](https://github.com/AakashGfude)

- [Shu Hu](https://github.com/shlff)

- [Jiacheng Li](https://l10727@nyu.edu)

- [Smit Lunagariya](https://github.com/Smit-create)

- [Matthew McKay](https://github.com/mmcky)

- [Maanasee Sharma](https://github.com/maanasee)

where $g_1 > 0, g_2 > 0$.

We shall see that when $\beta R = 1$ (a condition assumed by Milton Friedman and Robert Hall), this criterion assigns higher welfare to **smoother** consumption paths.

We shall see that when $\beta R = 1$ (a condition assumed by Milton Friedman {cite}`Friedman1956` and Robert Hall {cite}`Hall1978`), this criterion assigns higher welfare to **smoother** consumption paths.

Here we use default parameters $R = 1.05$, $g_1 = 1$, $g_2 = 1/2$, and $T = 65$.

which says that the present value of the consumption stream equals the sum of finanical and non-financial wealth.

Robert Hall (1978) showed that when $\beta R = 1$, a condition Milton Friedman had assumed,

Robert Hall {cite}`Hall1978` showed that when $\beta R = 1$, a condition Milton Friedman had assumed,

it is "optimal" for a consumer to **smooth consumption** by setting

$$