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On the macroeconomics of uncertainty and incomplete markets Author info | Abstract | Publisher info | Download info | Related research | Statistics DREZE, Jacques
Presidential address for the Twelfth World Congress of the International Economic Association, summarising semi-formally the authorÕs recent work and concerns. Uncertainty and incomplete markets breed demand volatility as well as price and wage rigidities. The conjunction of these leads to multiple, volatile supply-constrained equilibria, typically reflecting coordination failures and apt to display persistence - as documented by three supporting theorems. Specific implications are linked to the conclusions that we should take coordination failures seriously, try to obviate demand volatility and try to bypass price and wage rigidities.
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
1999064.
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Date of creation: 01 Nov 1999Date of revision:
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Herings, P.J.J. & Dreze, J.H., 1998.
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"Economic reforms and industrial performance: An analysis of capacity utilisation in Indian manufacturing ,"
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Citanna,Alessandro & Cres,Herve & Dreze,Jacques & Herings,P. Jean-Jacques & Villanacci,Antonio, 2001.
"Underemployment of Resources and Self-fulfilling Beliefs: Non-Walrasian Allocations at Walrasian Prices ,"
Research Memoranda
003, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
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Other versions: Sander van der Hoog, 2004.
"Credit and Cash-in-Advance in Disequilibrium Models ,"
Computing in Economics and Finance 2004
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Hoog S. van der, 2005.
"On the Micro-Dynamics of a Cash-in-Advance Economy (revised version of WP 04-12) ,"
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Fagnart, Jean-Franois & Sneessens, Henri, 2001.
"Microeconomic Uncertainty and Macroeconomic Indeterminacy ,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2001007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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Other versions: Olivier SCAILLET, 2001.
"Density Estimation Using Inverse and Reciprocal Inverse Guassian Kernels ,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2001017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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Other versions: Gerald Stuber, 2001.
"Implications of Uncertainty about Long-Run Inflation and the Price Level ,"
Working Papers
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