Abstract:
We investigate important macroeconomic and macroeeonometric
feedback channels in models that concern the dynamic interaction of the labor
market, product market and the monetary and financial sector. The core of
our study is an applied disequilibrium model of monetary growth of a small
open economy. After surveying the feedback channels we consider a compact
description of the intensive fonn of the model. We consider various types of
subsystems, the integration of which is subsequently compared from the perspective
of bifurcation diagrams that separate eases of asymptotic stability from
stable cyclical behavior as well as pure explosiveness. In this way we layout
a research strategy, which will show, in contrast to what is generally believed,
that applied integrated macrodynamic systems can have a variety of interesting
altraetors and transient dynamics, which are obtained in particular when
locally explosive situations are turned into bounded dynamics by the addition
of specifically tailored extrinsic nonlinearities.
