Time: 4.00pm - 6.00pm
Venue: Room 4006, John Galsworthy building, Penrhyn Road campus, Penrhyn Road, Kingston upon Thames, Surrey KT1 2EE
Please join us for this event as part of the Economic Department Research Seminar Series.
‘TBA' by Eithne Murphy (National University or Ireland - Galway)
Please revisit for Eithne's abstract.
This paper builds a continuous time Goodwin model with price dynamics and an endogenous interest rate that depends positively on debt-capital stock ratio. We find that the economy displays two equilibria, one low debt-capital ratio and a positive inflation and one with negative inflation and high debt-capital ratio. The "good" equilibrium is only locally stable whereas the "bad" equilibrium is unstable. We show that, depending on its magnitude, a debt-write-off can push the economy from a deflationary spiral and exploding debt to the basin of attraction for the "good" equilibrium with low debt.
Devrim Yilmaz took his PhD in Economics from University of Manchester on public spending, growth and welfare. He worked as a Post-Doctoral Teaching Fellow at University of York and as a Lecturer in Macroeconomics at University of Manchester, and is currently a Senior Lecturer in Economics at Kingston University. His research interests include stock-flow consistent models, agent-based models, continuous time dynamic models and and monetary theory of production. He teaches macroeconomics, money banking and financial markets and economic modelling.
Booking is essential to attend this event.
For further information about this event:
Contact: Antoine Godin
Directions to Room 4006, John Galsworthy building, Penrhyn Road campus, Penrhyn Road, Kingston upon Thames, Surrey KT1 2EE: