A well known result from (Caplin and Spulber 1987) shows that even in the presence of price rigidity, aggregated product of an economy may be unaffected by changes in the money supply. Here we relax the assumptions of continuity of such result by using agent based simulation, and analyzing the dynamics of output under such conditions. We show that in the agent-based version of the model money is no longer neutral and cyclic dynamics emerge. Such dynamics is influenced mainly by expectations of income, expectations of inflation, and implementations of (s, S) strategies. Oscillations in output grow stronger as the economy departs from initial equilibrium conditions.
|出版ステータス||Published - 2010|
|イベント||24th Annual European Simulation and Modelling Conference, ESM 2010 - Hasselt, Belgium|
継続期間: 2010 10 25 → 2010 10 27
|Other||24th Annual European Simulation and Modelling Conference, ESM 2010|
|Period||10/10/25 → 10/10/27|
ASJC Scopus subject areas
- Modelling and Simulation