Price expectations, disequilibrium adjustments, and macroeconomic price stability
| dc.contributor.author | Burmeister, Edwin | |
| dc.contributor.author | Turnovsky, SJ | |
| dc.date.accessioned | 2010-03-09T15:32:08Z | |
| dc.date.available | 2010-03-09T15:32:08Z | |
| dc.date.issued | 1978 | |
| 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 ! | |
| dc.format.extent | 3691683 bytes | |
| dc.format.mimetype | application/pdf | |
| dc.identifier.uri | ||
| dc.language.iso | en_US | |
| dc.publisher | Journal of Economic Theory | |
| dc.subject | price expectations mechanism | |
| dc.subject | saddlepoint instability | |
| dc.title | Price expectations, disequilibrium adjustments, and macroeconomic price stability | |
| dc.type | Journal article |
Files
Original bundle
- Name:
- Burmeister_price_expectations_disequilibrium_adjustments.pdf
- Size:
- 3.52 MB
- Format:
- Adobe Portable Document Format