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Disequilibrium, Reproduction and Money: a C lassical Approach
Author(s) -
Benetti Carlo,
Bidard Christian,
Klimovsky Edith,
Rebeyrol Antoine
Publication year - 2014
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12051
Subject(s) - disequilibrium , economics , reproduction , capital (architecture) , monetary economics , settlement (finance) , stability (learning theory) , microeconomics , payment , finance , ecology , computer science , medicine , history , archaeology , machine learning , ophthalmology , biology
Abstract We consider a bisector reproduction model in which money is introduced as a pure means of exchange issued by a bank at the producers' requests. Each capitalist aims at maximizing accumulation in his own sector. Their plans are based on available quantities and expected prices. Effective prices are determined by a market mechanism. Temporary disequilibria occur in both physical and monetary terms. The settlement of the monetary balances is operated by means of a transfer of capital goods. Final allocations and effective productions are thus determined. The dynamics of the economy are those of a sequence of temporary disequilibria and let appear several possibilities (local or global stability, cycles) depending on the values of the parameters.