On the stability of a certain Keynes-Metzler-Goodwin monetary growth model
Sołtysiak Damian ()
Additional contact information
Sołtysiak Damian: 1 Department of Applied Mathematics, Poznań University of Economics and Business, al. Niepodległości 10, 61-875, Poznań, Poland
Economics and Business Review, 2023, vol. 9, issue 1, 26-64
The article has three aims. The first aim is to develop an improved version of the Keynes-Metzler-Goodwin (the KMG) monetary growth model originally presented and analysed in a series of publications by Carl Chiarella, Peter Flaschel and Willi Semler. The improvement of the model is obtained by modifying some of its equations in a way which ensures that they reflect real macroeconomic dependencies more properly. The equations that have been modified describe final demand expectations, determinants of production decisions, fixed capital accumulation, tax revenues, government budget deficit and money demand. The second aim is to transform the model into an intensive form described by seven non-linear differential equations and determine its unique steady state which shows proportions between variables on the balanced growth path. The third ultimate aim is to present a mathematical proof that the new improved version of the KMG model is locally asymptotically stable.
Keywords: Keynesian macroeconomics; disequilibrium macroeconomics; monetary growth models; nonlinear economic; dynamics stability (search for similar items in EconPapers)
JEL-codes: C62 E12 E40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecobur:v:9:y:2023:i:1:p:26-64:n:1
Access Statistics for this article
Economics and Business Review is currently edited by Tadeusz Kowalski
More articles in Economics and Business Review from Sciendo
Bibliographic data for series maintained by Peter Golla ().