We use the framework implicit in the model of inflation by Shone (1997) to address the analytical properties of a simple dynamic aggregate supply and aggregate demand (AS-AD) model and solve it numerically. The model undergoes a bifurcation as its steady state smoothly interchanges stability...

In recent months, the euro area has been under fire from the financial markets, speculators being blamed for the mounting of a kind of conspiracy whose ultimate goal would be the disintegration of the project's Economic and Monetary Union (EMU). In this paper, we discuss the true reasons of this...