Monetary Growth with Disequilibrium: a Non-Walrasian baseline model

Shogo Ogawa

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, we present a baseline monetary growth model for disequilibrium macroeconomics. Our model is similar to the existing Keynes-Wicksell models, but we highlight a characteristic of disequilibrium (non-Walrasian) macroeconomics, that is, the regime dividing in the static model. In addition, since we synthesize demand-side factors (Keynesian) and supply-side factors (neo-classical), we find a new effect on dynamical feedback loops, that is, the dual-decision effect. This new effect stabilizes (resp. destabilizes) an unstable (resp. a stable) feedback loop when the regime switches from the demand-side to the supply-side. Moreover, this dual-decision effect partly works on the real wage adjustment process and it enhances the instability if the economy is in Keynesian regime. We implement numerical experiments to confirm these results, and find that Walrasian equilibrium itself is not always stable.

Keywords: Disequilibrium macroeconomics; Non-Walrasian analysis; Keynes-Wicksell model; Economic growth (search for similar items in EconPapers)
JEL-codes: E12 E40 O42 (search for similar items in EconPapers)
Date: 2020-06-16
New Economics Papers: this item is included in nep-mac, nep-mon and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://mpra.ub.uni-muenchen.de/104870/8/MPRA_paper_104870.pdf revised version (application/pdf)

Related works:
Journal Article: Monetary growth with disequilibrium: A non-Walrasian baseline model (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:101236

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