On the dynamics of an inflation IS‐LM model

The aim of the present paper is to analyze the dynamic of a generalized IS‐LM macroeconomic model for the inflation via the use of the averaging theory of dynamical systems. For this 3‐dimensional system we present a rigorous proof on the existence of a limit cycle in the case of considering a nonli...

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Veröffentlicht in:Economic modelling 2012-11, Vol.29 (6), p.2090-2094
Hauptverfasser: Guirao, Juan L.G., García‐Rubio, Raquel, Vera, Juan A.
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Sprache:eng
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Zusammenfassung:The aim of the present paper is to analyze the dynamic of a generalized IS‐LM macroeconomic model for the inflation via the use of the averaging theory of dynamical systems. For this 3‐dimensional system we present a rigorous proof on the existence of a limit cycle in the case of considering a nonlinear action of cubic type on the real net product. Moreover we study the stability and the Hopf bifurcations of the system equilibria for different values of the parameters. ► The dynamic of a generalized ISLM macroeconomic model for the inflation using averaging theory is studied. ► A limit cycle is obtained for a non-linear cubic action for real net product. ► Stability and Hopf bifurcations of equilibria are presented. ► The results generalize [V. Torre, Economtrica 45(6), 1457-1466,1977].
ISSN:0264-9993
1873-6122
DOI:10.1016/j.econmod.2012.07.007