 Monetary growth with disequilibrium: A non-Walrasian baseline modelStructural Change and Economic Dynamics, 2022, vol. 62, issue C, 512-528 Abstract: In this study, we present a baseline monetary growth model of disequilibrium macroeconomics similar to the existing Keynes-Wicksell model. However, we highlight a characteristic of disequilibrium (non-Walrasian) macroeconomics, specifically the regime dividing in the static model. In addition, because we synthesize demand-side factors (Keynesian) and supply-side factors (neo-classical), we find a new effect on the dynamic feedback loops; that is, the dual-decision effect. This new effect stabilizes/destabilizes an unstable/stable feedback loop when the regime switches from the demand-side to the supply-side. Moreover, this dual-decision effect partly works in the real wage adjustment process and enhances instability if the economy is in a Keynesian regime. We implement numerical experiments to confirm these results, and find that the Walrasian equilibrium itself is not always stable. Keywords: Disequilibrium macroeconomics; Monetary growth model; Non Walrasian analysis; Keynesian unemployment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:62:y:2022:i:c:p:512-528 DOI: 10.1016/j.strueco.2022.06.001 Access Statistics for this article Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen More articles in Structural Change and Economic Dynamics from Elsevier |
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