We reformulate the traditional AS-AD growth model of the Neoclassical Synthesis (stage I) with a Taylor policy rule replacing the conventional LM-curve, with gradually adjusting wages as well as prices, and with perfect foresight on current inflation rates and an adaptively revised notion of an...

Preface Introduction Explicit Representation and Feedback Structure of the Core 18D Dynamical System Numerical Simulations of the Real Part of 18D Dynamics Adding Policy Issues to the Real Dynamics Adding Asset Price Dynamics to the Real Dynamics Numerical Investigations of the Full 18D...

Monetary responses to financial stress have recently become an important issue in macroeconomic and policy discussions in the USA as well as in the EU. In this paper, the authors study two regimes of monetary responses. While the fundamentals of an economy are assumed to have a long-run...

This paper studies wage-price dynamics in the context of a disequilibrium macro model where there are two Phillips (PC) curves, a wage PC and price PC. We adapt this framework but introduce a Kaldorian delay effect in wage dynamics whereby output and sales predate wage dynamics. Though along...

Currently, many monetary and fiscal policy measures are aimed at preventing the financial market meltdown that started in the US subprime sector and has spread worldwide as a great recession. Although some slow recovery appears to be on the horizon, it is worthwhile exploring the fragility and...