 |
|
|
|
| HAL: hal-00661956, version 1 |
| Detailed view |  Export this paper |
|
|
| Workshop on Economic Heterogeneous Interacting Agents ESHIA/WEHIA 2010, Alessandria : Italie (2010) |
|
|
|
|
| Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money |
|
|
| Pascal Seppecher 1 |
|
|
| (2010-06) |
|
|
|
| We present a model of a dynamic and complex economy in which the creation and the destruction of money result from interactions between multiple and heterogeneous agents. In the baseline scenario, we observe the stabilization of the income distribution between wages and profits. We then alter the model by increasing the flexibility of wages. This change leads to the formation of a deflationary spiral. Aggregate activity decreases and the unemployment increases. The macroeconomic stability of the model is affected and eventually a systemic crisis arises. Finally, we show that the introduction of a minimum wage would have allowed the aggregate demand to be boosted and to avoid this crisis. |
|
|
|
|
|
|
|
|
|
|
|
| 1: | Centre d'Etudes en Macroéconomie et Finance Internationale (CEMAFI) |
|
|
|
Université Nice Sophia Antipolis [UNS] |
|
|
|
|
|
|
|
|
|
| Subject | : | Humanities and Social Sciences/Economies and finances Computer Science/Multiagent Systems Computer Science/Modeling and Simulation |
|
|
| monetary economics – endogenous money – labor market dynamics – deflation – agent-based modeling |
|
|
|
| Attached file list to this document: | |||||
|
|||||
|
|
|
| hal-00661956, version 1 | |
| http://hal-unice.archives-ouvertes.fr/hal-00661956 | |
| oai:hal-unice.archives-ouvertes.fr:hal-00661956 | |
| From: Pascal Seppecher | |
| Submitted on: Saturday, 21 January 2012 16:11:21 | |
| Updated on: Monday, 23 January 2012 11:48:28 | |
