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Beyond the Accelerating Inflation Controversy: The Jerk and Jounce Price Variation

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  • Giovanni Bella

    (Department of Economics and Business, Via S. Ignazio, 17 – 09123 Cagliari, Italy)

Abstract

The aim of this paper is to re-interprete the accelerationist Phillips curve, by studying the effect of the higher-order derivatives of acceleration. We show that a complex dynamic behavior emerges when dealing with a jerk and jounce displacement of price settings, whose simple unfolding leads to a three dimensional vector field which generates a double-scroll chaotic attractor.

Suggested Citation

  • Giovanni Bella, 2017. "Beyond the Accelerating Inflation Controversy: The Jerk and Jounce Price Variation," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(11), pages 315-322, 11-2017.
    • Handle: RePEc:arp:ijefrr:2017:p:315-322
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    References listed on IDEAS

    as
    1. Schmitt-Grohe, Stephanie & Uribe, Martin, 2004. "Optimal fiscal and monetary policy under sticky prices," Journal of Economic Theory, Elsevier, vol. 114(2), pages 198-230, February.
    2. Schmitt-Grohe, Stephanie & Uribe, Martin, 2004. "Optimal fiscal and monetary policy under imperfect competition," Journal of Macroeconomics, Elsevier, vol. 26(2), pages 183-209, June.
    3. Blanchard, Oliver & Cerutti, Eugenio & SUmmers, Lawrence, 2015. "Inflation and Activity - Two Explorations and Their Monetary Policy Implications," Working Paper Series 15-070, Harvard University, John F. Kennedy School of Government.
    4. Stephen J. Turnovsky, 2011. "Stabilization Theory and Policy: 50 Years after the Phillips Curve," Economica, London School of Economics and Political Science, vol. 78(309), pages 67-88, January.
    5. Giuseppe Fontana & Mark Setterfield (ed.), 2009. "Macroeconomic Theory and Macroeconomic Pedagogy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-29166-9.
    6. Wendy Carlin & David Soskice, 2009. "Teaching Intermediate Macroeconomics using the 3-Equation Model," Palgrave Macmillan Books, in: Giuseppe Fontana & Mark Setterfield (ed.), Macroeconomic Theory and Macroeconomic Pedagogy, chapter 1, pages 13-35, Palgrave Macmillan.
    7. Wang, Jiezhi & Chen, Zengqiang & Yuan, Zhuzhi, 2009. "Existence of a new three-dimensional chaotic attractor," Chaos, Solitons & Fractals, Elsevier, vol. 42(5), pages 3053-3057.
    8. Rotemberg, Julio J, 1982. "Sticky Prices in the United States," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1187-1211, December.
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