This paper investigates the role of fiscal and monetary shocks in the occurrence of deflationary recessions. Our model is based on a temporary equilibrium approach with stochastic rationing, where inventory dynamics is explicitly taken into account, amplifying spillover effects between markets. This setting allows us to study the driving forces behind disequilibrium phenomena, and to investigate the efficacy of alternative policies in overcoming them. In particular, we provide for an application of our approach to the study of the Japanese deflationary recession.

Colombo, L. V. A., Weinrich, G., Deflationary Recessions in a General-Equilibrium Framework, in Namatame, A., Kaizouji, T., Aruka, Y. (ed.), The Complex Networks of Economic Interactions, Springer, Berlin, Heidelberg 2006: <<LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS>>, 125- 138 [http://hdl.handle.net/10807/25668]

Deflationary Recessions in a General-Equilibrium Framework

Colombo, Luca Vittorio Angelo;Weinrich, Gerd
2006

Abstract

This paper investigates the role of fiscal and monetary shocks in the occurrence of deflationary recessions. Our model is based on a temporary equilibrium approach with stochastic rationing, where inventory dynamics is explicitly taken into account, amplifying spillover effects between markets. This setting allows us to study the driving forces behind disequilibrium phenomena, and to investigate the efficacy of alternative policies in overcoming them. In particular, we provide for an application of our approach to the study of the Japanese deflationary recession.
2006
Inglese
The Complex Networks of Economic Interactions
3-540-28726-4
Colombo, L. V. A., Weinrich, G., Deflationary Recessions in a General-Equilibrium Framework, in Namatame, A., Kaizouji, T., Aruka, Y. (ed.), The Complex Networks of Economic Interactions, Springer, Berlin, Heidelberg 2006: <<LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS>>, 125- 138 [http://hdl.handle.net/10807/25668]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/25668
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