6533b7cffe1ef96bd12596ef
RESEARCH PRODUCT
Active monetary policy and instability in a phillips curve system
Miguel RoigJuan D. MontoroJose V. Pazsubject
Stabilization policyEconomics and EconometricsComplex dynamicsKeynesian economicsMonetary policyChaoticEconomicsPhillips curveInstabilityParametric statisticsdescription
The presence of nonlinearities in a Phillips curve system yields to complex dynamics, i.e., cyclical behavior that may (under some parametric set) become chaotic. This paper extends these conclusions by including an active monetary policy. We show how stabilization policy may lead to amplified instabilities and that agents' expectations tend to play a key role in the amount of these instabilities.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1998-09-01 | Journal of Macroeconomics |