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Numerical Exploration of Kaldorian Macrodynamics : Enhanced Stability and Predominance of Period Doubling and Chaos with Flexible Exchange Rates
Joint Authors
Asada, Toichiro
Douskos, Christos
Markellos, Panagiotis
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2008, Issue 2008 (31 Dec. 2008), pp.1-23, 23 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2008-09-25
Country of Publication
Egypt
No. of Pages
23
Main Subjects
Abstract EN
We explore a discrete Kaldorian macrodynamic model of an open economy with flexible exchange rates, focusing on the effects of variation of the model parameters, the speed of adjustment of the goods market α, and the degree of capital mobility β.
We determine by a numerical grid search method the stability region in parameter space and find that flexible rates cause enhanced stability of equilibrium with respect to variations of the parameters.
We identify the Hopf-Neimark bifurcation curve and the flip bifurcation curve, and find that the period doubling cascades which leads to chaos is the dominant behavior of the system outside the stability region, persisting to large values of β.
Cyclical behavior of noticeable presence is detected for some extreme values of a state parameter.
Bifurcation and Lyapunov exponent diagrams are computed illustrating the complex dynamics involved.
Examples of attractors and trajectories are presented.
The effect of the speed of adaptation of the expected rate is also briefly discussed.
Finally, we explore a special model variation incorporating the “wealth effect” which is found to behave similarly to the basic model, contrary to the model of fixed exchange rates in which incorporation of this effect causes an entirely different behavior.
American Psychological Association (APA)
Asada, Toichiro& Douskos, Christos& Markellos, Panagiotis. 2008. Numerical Exploration of Kaldorian Macrodynamics : Enhanced Stability and Predominance of Period Doubling and Chaos with Flexible Exchange Rates. Discrete Dynamics in Nature and Society،Vol. 2008, no. 2008, pp.1-23.
https://search.emarefa.net/detail/BIM-478972
Modern Language Association (MLA)
Asada, Toichiro…[et al.]. Numerical Exploration of Kaldorian Macrodynamics : Enhanced Stability and Predominance of Period Doubling and Chaos with Flexible Exchange Rates. Discrete Dynamics in Nature and Society No. 2008 (2008), pp.1-23.
https://search.emarefa.net/detail/BIM-478972
American Medical Association (AMA)
Asada, Toichiro& Douskos, Christos& Markellos, Panagiotis. Numerical Exploration of Kaldorian Macrodynamics : Enhanced Stability and Predominance of Period Doubling and Chaos with Flexible Exchange Rates. Discrete Dynamics in Nature and Society. 2008. Vol. 2008, no. 2008, pp.1-23.
https://search.emarefa.net/detail/BIM-478972
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-478972