Datta, Soumya (2014): Macrodynamics of debtfinanced investmentled growth with interest rate rules.

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Abstract
This paper demonstrates the diverse dynamical possibilities arising out of a simple macroeconomic model of debtfinanced investmentled 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. We investigate whether, given this framework, the financial sector can provide endogenous bounds to an otherwise unstable system. The effectiveness of monetary policy in the form of a Taylortype interest rate rule targeting capacity utilization is examined under this context.
Item Type:  MPRA Paper 

Original Title:  Macrodynamics of debtfinanced investmentled growth with interest rate rules 
English Title:  Macrodynamics of debtfinanced investmentled growth with interest rate rules 
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 ; PostKeynesian E  Macroeconomics and Monetary Economics > E3  Prices, Business Fluctuations, and Cycles > E32  Business Fluctuations ; Cycles E  Macroeconomics and Monetary Economics > E4  Money and Interest Rates > E44  Financial Markets and the Macroeconomy G  Financial Economics > G0  General > G01  Financial Crises 
Item ID:  56713 
Depositing User:  Dr. Soumya Datta 
Date Deposited:  18 Jun 2014 00:13 
Last Modified:  05 Oct 2019 16:37 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/56713 