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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. Ramsey, James B & Sayers, Chera L & Rothman, Philip, 1990. "The Statistical Properties of Dimension Calculations Using Small Data Sets: Some Economic Applications," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(4), pages 991-1020, November.
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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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