Stability in models of money and perfect foresight: Implications of non-linearity

Economic Modelling

Volumn 16, Issue 2, 1999, Pages 221-233

  Flaschel, Peter ^a   Sethi, Rajiv ^b  

^a BIELEFELD UNIVERSITY   (Germany)

^b Program on US Russia Relations at Columbia s Harriman Institute   (United States)

Author keywords

Cagan model; E31; E32; Perfect foresight; Relaxation oscillations; Sluggish prices

Indexed keywords

EID: 0043099883     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/s0264-9993(98)00040-6     Document Type: Article

References (14)

1. Blanchard O. Output, the stock market and interest rates. Am. Econ. Rev. 71:1981;132-143.
2. Burmeister E. On some conceptual issues in rational expectations modeling. J. Money Credit Bank. 12:1980;800-816.
3. Calvo G. The stability of models of money and perfect foresight: a comment. Econometrica. 45:1977;1737-1739.
4. Chiarella C. Perfect foresight models and the dynamic instability problem from a higher viewpoint. Econ. Modell. 5:1986;283-292.
5. Chiarella, C., 1990. The Elements of a Non-linear Theory of Economic Dynamics. Springer Verlag, Berlin.
6. Chiarella, C., 1992. Monetary and fiscal policy under non-linear exchange rate dynamics. In: Feichtinger, G. (Ed.), Non-linear Methods in Economic Dynamics and Optimal Control. Springer Verlag, Berlin.
7. Flaschel, P., 1993. Macrodynamics. Income Distribution, Effective Demand and Cyclical Growth. Verlag Peter Lang, Bern.
8. George D.A.R., Oxley L.T. Structural stability and model design. Econ. Modell. 2:1985;307-316.
9. Goldman S.M. Hyper inflation and the rate of growth in the money supply. J. Econ. Theory. 5:1972;250-257.
10. Gray M.R., Turnovsky S.J. The stability of exchange rate dynamics under perfect foresight. Int. Econ. Rev. 20:1979;643-660.
11. Oxley L.T., George D.A.R. Linear saddlepoint dynamics 'on their head'. The scientific content of the new orthodoxy in macroeconomics. Eur. J. Polit. Econ. 10:1994;389-400.
12. Sargent T., Wallace N. The stability of models of money and growth with perfect foresight. Econometrica. 41:1973;1043-1048.
13. Stein, J., 1982. Monetarist, Keynesian and New Classical Economics. Basil Blackwell, London.
14. Turnovsky, S.J., 1995. Methods of Macroeconomic Dynamics. The MIT Press, Cambridge, MA.