Towards Keynesian DSGD (isequilibrium) Modelling: Real-Financial Market Interactions with Heterogeneous Expectations Dynamics
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Organización Internacional del Trabajo (OIT)
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| Format: | Entrada de enciclopedia |
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International Labour Organization
2012
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| _version_ | 1874525009829953536 |
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| author | Matthieu Charpe Peter Flaschel Florian Hartmann Roberto Veneziani |
| author_facet | Matthieu Charpe Peter Flaschel Florian Hartmann Roberto Veneziani Matthieu Charpe Peter Flaschel Florian Hartmann Roberto Veneziani |
| contents | Towards Keynesian DSGD (isequilibrium) Modelling: Real-Financial Market Interactions with Heterogeneous Expectations Dynamics Matthieu Charpe Peter Flaschel Florian Hartmann Roberto Veneziani We consider an alternative modelling approach to the mainstream DSGE paradigm, namely basically a Dynamic Stochastic General Disequilibrium model of continuous adjustment processes on interacting real and financial markets. We introduce heterogeneous capital gain expectations (chartists and fundamentalists) and show that the first type of agents tends to destabilise he economy. Global stability can be ensured if opinions favour fundamentalist behaviour far off the steady state. This interaction of expectations and population dynamics is bounding the real-financial market interactions, but allows for irregular behaviour within these bounds. Stability can be further improved by adding suitable policy measures. IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute publication.encyclopediaEntry |
| format | Entrada de enciclopedia |
| id | ilo_995333293102676 |
| institution | Organización Internacional del Trabajo (OIT) |
| publishDate | 2012 |
| publisher | International Labour Organization |
| spellingShingle | Towards Keynesian DSGD (isequilibrium) Modelling: Real-Financial Market Interactions with Heterogeneous Expectations Dynamics Matthieu Charpe Peter Flaschel Florian Hartmann Roberto Veneziani Towards Keynesian DSGD (isequilibrium) Modelling: Real-Financial Market Interactions with Heterogeneous Expectations Dynamics Matthieu Charpe Peter Flaschel Florian Hartmann Roberto Veneziani We consider an alternative modelling approach to the mainstream DSGE paradigm, namely basically a Dynamic Stochastic General Disequilibrium model of continuous adjustment processes on interacting real and financial markets. We introduce heterogeneous capital gain expectations (chartists and fundamentalists) and show that the first type of agents tends to destabilise he economy. Global stability can be ensured if opinions favour fundamentalist behaviour far off the steady state. This interaction of expectations and population dynamics is bounding the real-financial market interactions, but allows for irregular behaviour within these bounds. Stability can be further improved by adding suitable policy measures. IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute publication.encyclopediaEntry |
| title | Towards Keynesian DSGD (isequilibrium) Modelling: Real-Financial Market Interactions with Heterogeneous Expectations Dynamics |
| url | https://researchrepository.ilo.org/esploro/outputs/encyclopediaEntry/Towards-Keynesian-DSGD-isequilibrium-Modelling-Real-Financial/995333293102676 |