Disequilibrium, Reproduction and Money: A Classical Approach

17 Pages Posted: 20 May 2014

See all articles by Carlo Benetti

Carlo Benetti

Université Paris Ouest - Nanterre, La Défense - EconomiX

Christian Bidard

Université Paris X Nanterre

Edith Klimovsky

Metropolitan Autonomous University

Antoine Rebeyrol

Université Paris Ouest - Nanterre, La Défense - EconomiX

Date Written: July 2014

Abstract

We consider a bisector reproduction model in which money is introduced as a pure means of exchange issued by a bank at the producers' requests. Each capitalist aims at maximizing accumulation in his own sector. Their plans are based on available quantities and expected prices. Effective prices are determined by a market mechanism. Temporary disequilibria occur in both physical and monetary terms. The settlement of the monetary balances is operated by means of a transfer of capital goods. Final allocations and effective productions are thus determined. The dynamics of the economy are those of a sequence of temporary disequilibria and let appear several possibilities (local or global stability, cycles) depending on the values of the parameters.

Suggested Citation

Benetti, Carlo and Bidard, Christian and Klimosvsky, Edith Alicia and Rebeyrol, Antoine, Disequilibrium, Reproduction and Money: A Classical Approach (July 2014). Metroeconomica, Vol. 65, Issue 3, pp. 524-540, 2014, Available at SSRN: https://ssrn.com/abstract=2438989 or http://dx.doi.org/10.1111/meca.12051

Carlo Benetti (Contact Author)

Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

200 Avenue de la République
Nanterre cedex, Nanterre Cedex 92000
France

Christian Bidard

Université Paris X Nanterre ( email )

Room G301, Building G
92001 Nanterre Cedex, 92001
France

Edith Alicia Klimosvsky

Metropolitan Autonomous University ( email )

Calzada del Hueso 1100
Coyoacan
Mexico, 04960
Mexico

Antoine Rebeyrol

Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

200 Avenue de la République
Nanterre cedex, Nanterre Cedex 92000
France

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