On dynamics in a Keynesian model of monetary stabilization policy with debt effect

Asada, Toichiro

On dynamics in a Keynesian model of monetary stabilization policy with debt effect / Toichiro Asada, Michal Demetrian, Rudolf Zimka. -- In this paper, a four-dimensional model of flexible prices with the central bank's stabilization policy, describing the development of the firms' private debt, the output, the expected rate of inflation and the rate of interest is analyzed. Questions concerning the existence of limit cycles around its normal equilibrium point are investigated. The bifurcation equation is found. The formulae for the calculation of its coefficients are gained. A numerical example is presented by means of numerical simulations.

In Communications in nonlinear science and numerical simulation. -- Amsterdam : Elsevier B.V., 2018. -- ISSN 1007-5704. -- Vol. 58, special issue (2018), pp. 131-146