The interest and study of global dynamics in macroeconomics is fairly recent. However, there has bee an increasing number of articles addressing the issue. In order to investigate the global dynamics of an economy, we introduce some mathematical techniques used in the dynamical systems...

The most popular simple rules, due to Taylor (1993) and McCallum (1995), are both meant to inform monetary policy in economies that are closed. On the other hand, their main open economy alternative, the Monetary Conditions Index (MCI) rule of Ball (1999) is flawed for a number or reasons, not...

According to the classical expectations hypothesis of the term structure of interest rates, long-term interest rates are determined by the expectations of the future short-term interest rate. This hypothesis is typically rejected, especially with U.S. data. One explanation that has recently been...

In the last decade the regional aspect of economic activities has reoccurred in the economic debate. Under labels like "industrial district", "innovative milieu", and "regional innovative systems" it has been frequently analysed why certain regions are economically successful while others are...

Economic modelling of financial markets means to model highly complex systems in which expectations can be the dominant driving forces. Therefore it is necessary to focus on how agents form their expectations. We believe that they look for patterns, hypothesize, try, make mistakes, learn and...

The study of fiscal policy and budget deficits has been an active field of research in economic theory throughout the decades. This literature has addressed very different questions such as the consequences of running budget deficits, the optimal financing of budget deficits or the required...

This paper deals with the indeterminacy of optimal fiscal policy treated by Zhu (1992) and Chari, Christiano and Kehoe (1994). These authors identify the optimal fiscal policy restricting the debt return to be uncontingent to the state of nature. In this paper we use other kind of restrictions...

A state constrained optimal control problem in economics with four linear control variables is discussed. First of all, the complex model of a concern is introduced and a suitable choice of the model functions and the model parameters is investigated. This means the adjustment of initial data as...

Let {Yt}, t=1,..., T be a time series generated according to the model: Yt=f(Xt)+et t=1, ..., T where f is a non linear continuous function, Xt = (X1t, X2t, ...,Xdt) is a vector of d non stochastic explanatory variables defined on a compact X belonging Rd , and {et} are zero mean random...

In this paper, we document some key business cycle properties of foreign aid flows to developing countries. We identify two striking empirical regularities. First, aid flows are highly volatile over time -- on average, two to three times as volatile as the recipient's output. Second, for most...