This paper studies relationships between the determinacy of a stationary equilibrium in the perfect foresight dynamics, and its local stability in dynamics arising from econometric learning procedures. There is no clear links in linear scalar economies where agents forecast only one perods...

This paper investigates a monetary model of exchange rate determination: an extension of the Krugman basic target zone model with price inertia applied to the French Franc. We consider a novel theoretical argument, the Threshold Cointegration, such that the long-run relationship between the...

We consider the determinacy of perfect foresight equilibrium near a steady state in an overlapping generations model with production and both altruistic and non altruistic agents having distinct utility functions. The proportions of each type of consumers is exogenously given. Such a model may...