Stable solutions to homogeneous difference-differential equations with constant coefficients: Analytical instruments and an application to monetary theory. (Q851638)

The paper generalizes a model from monetary economics by \textit{U.\ von Kalckreuth} and \textit{J.\ Schröder} [Review of Economics 53, 125--141 (2002)]. It is a monetary macroeconomic model which includes homogeneous linear differential-difference equations with constant coefficients. The paper deals with a method of determining the stability of solutions for such equations using a theorem by \textit{E.\ Hilb} [Math. Ann. 78, 137--170 (1917; JFM 46.0707.02)]. The resulting method is rather general and can be applied to a large class of dynamical problems. In the paper the method is applied just to the dynamic model of monetary transmission at hand and some conclusions are drawn.