Premium
Fisher, Keynes, and the Corridor of Stability
Author(s) -
Dimand Robert W.
Publication year - 2005
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.2005.00357.x
Subject(s) - deflation , economics , stability (learning theory) , keynesian economics , debt , macroeconomics , monetary economics , monetary policy , computer science , machine learning
A bstract . This chapter draws on the debt‐deflation process of Fisher (1933) as well as on Keynes (1936, chapter 19) and Tobin (1975, 1980) to explore the concept of a corridor of stability, where an economy will be self‐adjusting only for demand shocks small enough to leave it within that corridor.