The paper considers an abstract economy exhibiting strategic complementarity and multiple, isolated Nash equilibria. It introduces explicit disequilibrium adjustments, which are based on a combination of adaptive and extrapolative forecasts. In this way the locally stable equilibria are...

The paper considers an abstract economy exhibiting strategic complentarity and multiple, isolated Nash equilibria. It introduces explicit disequilibrium adjustments, which are based on a combination of adaptive and extrapolative forecasts. In this way the locally stable equilibria are typically...

This paper reconsiders the version of a Keynes-Wicksell model that was introduced in a textbook by T. Sargent (Macroeconomics). After giving a full and mathematically consistent formulation, local stability and instability of the steady state is characterized by different speeds of adjustment in...