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Many Countries That Experience Hyperinflation Do Not Have Market-Determined Interest

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Many countries that experience hyperinflation do not have market-determined interest rates.As a result,some authors have substituted future inflation rates into money demand equations of the following type as a proxy: Many countries that experience hyperinflation do not have market-determined interest rates.As a result,some authors have substituted future inflation rates into money demand equations of the following type as a proxy: (m is real money,and P is the consumer price index). Income is typically omitted since movements in it are dwarfed by money growth and the inflation rate.Authors have then interpreted β1 as the semi-elasticity of the inflation rate.Do you see any problems with this interpretation? (m is real money,and P is the consumer price index).
Income is typically omitted since movements in it are dwarfed by money growth and the inflation rate.Authors have then interpreted β1 as the "semi-elasticity" of the inflation rate.Do you see any problems with this interpretation?

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Linearizing the above equation results i...

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