Sunspot equilibria in a monetary real business cycle model
Research output: Journal contributions › Journal articles › Research › peer-review
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.
| Original language | English |
|---|---|
| Journal | Economics Letters |
| Volume | 53 |
| Issue number | 3 |
| Pages (from-to) | 305-310 |
| Number of pages | 6 |
| ISSN | 0165-1765 |
| DOIs | |
| Publication status | Published - 01.12.1996 |
| Externally published | Yes |
- Finance
- Economics and Econometrics
ASJC Scopus Subject Areas
- Real business cycles, Sunspots
- Economics
