Sunspot equilibria in a monetary real business cycle model

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

In this paper a modification of the cash-in-advance real business cycle model is introduced in which the possibility of any credit contract is excluded. We show that for some parameter settings the model displays familiar saddle-point stability whereas for other constellations the steady state is a sink. In those cases, sunspot solutions are obtained.
OriginalspracheEnglisch
ZeitschriftEconomics Letters
Jahrgang53
Ausgabenummer3
Seiten (von - bis)305-310
Anzahl der Seiten6
ISSN0165-1765
DOIs
PublikationsstatusErschienen - 01.12.1996
Extern publiziertJa

DOI