Random perturbations of deterministic equilibria

• 成果类型: Article
• 署名作者: Gagnon, G
• 署名单位: Toronto Metropolitan University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/S0022-0531(03)00076-0
• 发表日期: 2003
• 页码: 135-146
• 关键词: randomly perturbed dynamical system; STABILITY

摘要

This paper examines whether a small random deviation from a non-random policy process will destabilize the equilibrium exchange rate. The results focus on exchange rate dynamics when the government maintains a target zone or makes unanticipated deviations from a policy rule. With rational expectations small random shocks do not create large deviations from the policy rule exchange rate. If agents are approximately rational large deviations between exchange rates are possible. (C) 2003 Elsevier Science (USA). All rights reserved.