Show simple item record Burmeister, Edwin en_US Turnovsky, S. J en_US 2010-03-09T15:32:08Z 2010-03-09T15:32:08Z 1978 en_US
dc.description.abstract In two previous papers we have discussed the formulation of a logically consistent adaptive-type price expectations mechanism in continuous time and have applied our results to derive sufficient conditions for dynamic price stability in a variety of economic models (Burmeister and Turnovsky [5, 2033. In all cases the sufficient conditions for stability entail a “slow” rate of adaptation which implies a consistent error in the direction of the forecasted versus actual price movements. This is a highly undesirable feature since one cannot realistically expect economic agents to persistently predict in the wrong direction ! en_US
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dc.language.iso en_US
dc.publisher Journal of Economic Theory en_US
dc.subject price expectations mechanism en_US
dc.subject saddlepoint instability en_US
dc.title Price expectations, disequilibrium adjustments, and macroeconomic price stability en_US
dc.type Journal Article en_US
dc.department Economics

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