In this paper an inflationary regime is added to the Metzlerian inventory cycle model. It is shown that for all originally instable parameter values the time paths are stabilized to limit cycle oscillations between the Keynesian and the inflationary regimes. This result is due to the fact that...

This paper presents a generalization of Varian's original contribution on disequilibrium models characterized by sequential trading. By building up the model on the differentiation of regimes we make the subject more easily comparable to standard disequilibrium models. Compared to the latter...