Money and inflation in a nonlinear model

A nonlinear model of inflation and growth, with a fixed rate of money growth, is developed and its global dynamics analysed. These are compared with the local, linearised dynamics of the model. It is shown that the global dynamics of the model plausibly predict hyperinflationary bubbles, which are not present in the linearised version. Numerical simulations of the model are presented.

MoreLess

Year of publication:	2008
Authors:	George, Donald A.R. ; Oxley, Les
Published in:	Mathematics and Computers in Simulation (MATCOM). - Elsevier, ISSN 0378-4754. - Vol. 78.2008, 2, p. 257-265
Publisher:	Elsevier
Subject:	Money \| Inflation \| Nonlinearity

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010749680