'Quasifundamental' variation in the price level and the inflation rate

Article Abstract:

A model is developed to examine the development of the 'quasifundamental' equilibria, the condition wherein price level and inflation rate are positively correlated with a 'fundamental' random variable. The model shows that in the quasifundamental equilibria, inflation rate is shown to be excessively variable both in quantitative and welfare-based variability measures. The utility of the quasifundamental equilibria model is in its ability to explain the implications of small deviations from the monetary steady state, which may affect its dynamic stability.

Administration of General Economic Programs, Economics, Research and Development in the Social Sciences and Humanities, Price & Wage Controls, Research, Inflation (Finance), Monetary policy, Price control, Price regulations, Wage price policy, Inflation (Economics)

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Two-period cycles in a three-period overlapping generations model

Article Abstract:

In simple pure exchange overlapping generations economies in which the households live for three periods, the properties of two-period monetary cycles is studied. It is shown that economies which fail the Grandmont condition, or which do not have conventional monetary steady states or where aggregate demand for assets is not decreasing in the real return rate at a gross real rate of unity can have monetary cycles.

Business cycles, Chicago school of economics, Monetarism, Economic theory

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Price level volatility: a simple model of money taxes and sunspots

Article Abstract:

Sunspot equilibria (SSE) in a static, one-commodity model with taxes and transfers denominated by money is possible only with the interaction of restricted and unrestricted consumers. The tax-adjusted Edgeworth box has been used to show that volatility in the model is purely monetary, that the SSEs are not merely randomizations of certainty equilibria and that SSE sources are identifiable.

Econometrics & Model Building, Analysis, Econometrics, Business models

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