When analyzing a dynamic economic model, one fundamental question is are the dynamics simple or chaotic? Inverse limits, as an area of topology, has its origins in the 1920s and since the 1950s has been very useful as a means of constructing "pathological" continua. However, since the 1980s,...

Some economic models like the cash-in-advance model of money have the property that the dynamics are ill-defined going forward in time, but well-defined going backward in time. In this paper, we apply the theory of inverse limits to characterize topologically all possible solutions to a dynamic...