Datta, Soumya
(2013):
*Convergence, cycles and complex dynamics of financing investment.*

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## Abstract

This paper demonstrates the diverse dynamical possibilities of a simple macroeconomic model of debt-financed investment-led growth in the presence of interest rate rules. We show possibilities of convergence to steady state, growth cycles around it as well as various complex dynamics from codim 1 and codim 2 bifurcations. The effectiveness of monetary policy in the form of interest rate rules is examined under this context.

Item Type: | MPRA Paper |
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Original Title: | Convergence, cycles and complex dynamics of financing investment |

English Title: | Convergence, cycles and complex dynamics of financing investment |

Language: | English |

Keywords: | Growth cycles, Hopf bifurcation, complex dynamics, Taylor rule |

Subjects: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C69 - Other E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles |

Item ID: | 52111 |

Depositing User: | Dr. Soumya Datta |

Date Deposited: | 10 Dec 2013 21:30 |

Last Modified: | 28 Sep 2019 05:29 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/52111 |