Working Paper
Dynamics of Fixprice Model
This paper examines the dynamics of a class of disequilibrium models developed in an earlier paper (Working Paper 8504) and uses both graphics and analysis to show that non-Walrasian equilibria can be steady states for disequilibrium models. In particular, it is shown that Keynesian (general excess supply) steady states are the most likely outcome in the model.
Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.
Suggested Citation
Kades, Eric. 1985. “Dynamics of Fixprice Model.” Federal Reserve Bank of Cleveland, Working Paper No. 85-05.
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