Exploiting a specific sunspot equilibrium in a standard forward-looking New Keynsian model, we present an example of a possible conflict between short-term price stability and financial stability. We find a conflict because the sunspot process consists of a self-fulfilling belief linking the...

This paper presents a simple Ramsey-type model example where two infinitely-living agents have same utility function except for time preference, and shows that equilibrium is indeterminate that is to be interpreted as being non-existent. The issues regarding New Keynesian transversality...

This paper analyses two types of models: 1. Those based on assumptions of monetary and financial market equilibrium disturbance in line with mainstream thinking that there is self-regulating market, the units would have rational expectations, and the crisis would be a temporary phenomenon caused...

Ride-sharing firms use pricing and matching decisions to control the ride-sharing platforms. Those decisions can be made jointly or interchangeably, which raises the following questions: Is matching optimization necessary? Specifically, is fixing the matching decisions to a simple rule and...

We propose a simple non-equilibrium model of a financial market as an open system with a possible exchange of money with an outside world and market frictions (trade impacts) incorporated into asset price dynamics via a feedback mechanism. Using a linear market impact model, this produces a...

In the real world, the theory of economic faces many obstacles in its analyses and interpretations. One of these problems is overlapping relationships between specific variables and difficulty of determining perfect formulation which contain all possible effect. Traditional statistics tools like...