Foundations for a Disequilibrium Theory of the Business Cycle

Carl Chiarella, Peter Flaschel and Reiner Franke

in Cambridge Books from Cambridge University Press

Abstract: Building on The Dynamics of Keynesian Monetary Growth by Chiarella and Flaschel (2000), this book is a key contribution to business cycle theory, setting out a disequilibrium approach with gradual adjustments of the key macroeconomic variables. Its analytic study of a deterministic model of economic activity, inflation and income distribution integrates elements in the tradition of Keynes, Metzler and Goodwin (KMG). After a qualitative analysis of the basic feedback mechanisms, the authors calibrate the KMG model to the stylized facts of the business cycle in the U.S. economy, and then undertake a detailed numerical investigation of the local and global dynamics generated by the model. Finally, topical issues in monetary policy are studied in small macromodels as well as for the KMG model by incorporating an estimated Taylor-type interest rate reaction function. The stability features of this enhanced model are also compared to those of the original KMG model.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (114)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Book: Foundations for a Disequilibrium Theory of the Business Cycle (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:cbooks:9780521850254

Ordering information: This item can be ordered from
http://www.cambridge ... p?isbn=9780521850254

Access Statistics for this book

More books in Cambridge Books from Cambridge University Press
Bibliographic data for series maintained by Data Services ().