Inflation and Speculation in a Dynamic Macroeconomic Model

Matheus R. Grasselli and Adrien Nguyen-Huu
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Matheus R. Grasselli: McMaster University, 1280 Main St. W, Hamilton, ON L8S 4L8, Canada

JRFM, 2015, vol. 8, issue 3, 1-26

Abstract: We study a monetary version of the Keen model by merging two alternative extensions, namely the addition of a dynamic price level and the introduction of speculation. We recall and study old and new equilibria, together with their local stability analysis. This includes a state of recession associated with a deflationary regime and characterized by falling employment but constant wage shares, with or without an accompanying debt crisis.

Keywords: Minsky’s financial instability hypothesis; debt-deflation; Keen model; stock-flow consistency; financial crisis; dynamical systems in macroeconomics; local stability (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Inflation and speculation in a dynamic macroeconomic model (2015)
Working Paper: Inflation and speculation in a dynamic macroeconomic model (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:8:y:2015:i:3:p:285-310:d:52143

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