Homoclinic Bifurcation and Endogenous Cycles in the Dynamic IS-LM Model

Giovanni Bella ()

Journal of Reviews on Global Economics, 2015, vol. 4, 242-250

Abstract: This paper contributes to the new keynesian literature by showing that stable endogenous cycles can emerge as equilibrium solutions of the traditional IS-LM model. The application of the original Bogdanov-Takens theorem allows us to determine the regions of the parametric space where the model exhibits a global indeterminate solution, and a lowgrowth trapping region, characterized by a continuum of equilibrium trajectories in the proximity of a homoclinic bifurcation.

Keywords: Multiple steady states; homoclinic bifurcation; oscillating solutions (search for similar items in EconPapers)
JEL-codes: C61 C62 E32 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:lif:jrgelg:v:4:y:2015:p:242-250

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