Inflation and speculation in a dynamic macroeconomic model

We study a monetary version of the Keen model by merging two alternative extensions, namely the addition of a dynamic price level and the introduction of speculation. We recall and study old and new equilibria, together with their local stability analysis. This includes a state of recession associated with a deflationary regime and characterized by falling employment but constant wage shares, with or without an accompanying debt crisis.

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Year of publication:	2015
Authors:	Grasselli, Matheus R. ; Nguyen Huu, Adrien
Published in:	Journal of Risk and Financial Management. - Basel : MDPI, ISSN 1911-8074. - Vol. 8.2015, 3, p. 285-310
Publisher:	Basel : MDPI
Subject:	Minsky’s financial instability hypothesis \| debt-deflation \| Keen model \| stock-flow consistency \| financial crisis \| dynamical systems in macroeconomics \| local stability

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.3390/jrfm8030285 [DOI] 870173502 [GVK] hdl:10419/178563 [Handle]
Source:	EconStor

Persistent link: https://www.econbiz.de/10011843261