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Macrodynamic feedback interaction between trade and production
Author(s) -
Eitelberg Eduard
Publication year - 2006
Publication title -
international journal of robust and nonlinear control
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.361
H-Index - 106
eISSN - 1099-1239
pISSN - 1049-8923
DOI - 10.1002/rnc.1112
Subject(s) - production (economics) , macro , simple (philosophy) , economics , nonlinear system , business cycle , microeconomics , mathematical economics , control theory (sociology) , econometrics , computer science , macroeconomics , control (management) , physics , management , philosophy , epistemology , quantum mechanics , programming language
Some significant aspects of dynamic behaviour of price level and economic activity are directly related to macroeconomic interaction between trade and production feedback loops. It is shown how this simple interaction can give, and likely has given, rise to macroeconomic business cycles as well as to counter‐intuitively slow responses to disturbances or commands. It is suggested that many puzzling deviations from economic equilibrium are caused by nonlinear interaction between feedback loops with independent regulators in macro‐ and microeconomy. Copyright © 2006 John Wiley & Sons, Ltd.