Stationary sunspot equilibria in a finance constrained economy (Q1082234): Difference between revisions
From MaRDI portal
Latest revision as of 16:24, 17 June 2024
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Stationary sunspot equilibria in a finance constrained economy |
scientific article |
Statements
Stationary sunspot equilibria in a finance constrained economy (English)
0 references
1986
0 references
Stationary sunspot equilibria are shown to exist in a production economy with infinite lived agents, when it is not possible to borrow against future wage income. Equilibrium fluctuations exhibit persistence over time scales of the same order of magnitude as observed ''business cycles''. An active fiscal policy that stabilizes aggregate money expenditures can prevent such fluctuations.
0 references
Stationary sunspot equilibria
0 references
production economy
0 references
infinite lived agents
0 references
active fiscal policy
0 references
0 references
