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Hopf bifurcation in an open monetary economic system: Taylor versus inflation targeting rules

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  • Moosavi Mohseni, Reza
  • Kilicman, Adem

Abstract

The main aim of the present work is to detect the Hopf bifurcation in policy relevant economic dynamical system. The study employs two deferent forms of monetary policy rules namely: Taylor rule and inflation targeting rule. The results show that there exists Hopf bifurcation between policy relevant variables in both types of rules in our open economic system.

Suggested Citation

  • Moosavi Mohseni, Reza & Kilicman, Adem, 2014. "Hopf bifurcation in an open monetary economic system: Taylor versus inflation targeting rules," Chaos, Solitons & Fractals, Elsevier, vol. 61(C), pages 8-12.
    • Handle: RePEc:eee:chsofr:v:61:y:2014:i:c:p:8-12
    DOI: 10.1016/j.chaos.2014.01.003
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    References listed on IDEAS

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    1. Barnett, William A. & Eryilmaz, Unal, 2013. "Hopf bifurcation in the Clarida, Gali, and Gertler model," Economic Modelling, Elsevier, vol. 31(C), pages 401-404.
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    7. Barnett, William A. & Eryilmaz, Unal, 2016. "An Analytical And Numerical Search For Bifurcations In Open Economy New Keynesian Models," Macroeconomic Dynamics, Cambridge University Press, vol. 20(2), pages 482-503, March.
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    Cited by:

    1. Mohd Naim Bin Mohd Johari & Adem Kilicman, 2017. "Hopf bifurcation in an open monetary economic system: Taylor vs. inflation targeting rules (Malaysian case)," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1327184-132, January.

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