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Indeterminacy in Open Economies

In: Growth and Business Cycles with Equilibrium Indeterminacy

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  • Kazuo Mino

    (Kyoto University Institute of Economic Research)

Abstract

In the previous chapters, we restrict our attention to closed-economy models. This chapter examines equilibrium indeterminacy in open economies. The central concern of this chapter is to explore how international transactions affect the dynamic behaviors of macroeconomies. In particular, we focus on the difference in the indeterminacy conditions between open economies and their closed economy counterparts. We first discuss small open economies and then explore the world economy consisting of two large countries.

Suggested Citation

  • Kazuo Mino, 2017. "Indeterminacy in Open Economies," Advances in Japanese Business and Economics, in: Growth and Business Cycles with Equilibrium Indeterminacy, chapter 0, pages 159-205, Springer.
    • Handle: RePEc:spr:advchp:978-4-431-55609-1_6
    DOI: 10.1007/978-4-431-55609-1_6
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