Convergence, cycles and complex dynamics of financing investment

This paper demonstrates the diverse dynamical possibilities of a simple macroeconomic model of debt-financed investment-led growth in the presence of interest rate rules. We show possibilities of convergence to steady state, growth cycles around it as well as various complex dynamics from codim 1 and codim 2 bifurcations. The effectiveness of monetary policy in the form of interest rate rules is examined under this context.

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Year of publication:	2013-03-22
Authors:	Datta, Soumya
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Growth cycles \| Hopf bifurcation \| complex dynamics \| Taylor rule

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; C69 - Mathematical Methods and Programming. Other ; E12 - Keynes; Keynesian; Post-Keynesian ; E32 - Business Fluctuations; Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011108609