Chapter

Processes of Change

Mario Amendola and Jean‐Luc Gaffard

in Out of Equilibrium

Published in print July 1998 | ISBN: 9780198293804
Published online November 2003 | e-ISBN: 9780191595851 | DOI: http://dx.doi.org/10.1093/0198293801.003.0008
 Processes of Change

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In this chapter specific processes of economic change are analysed by means of simulations of the model that formalizes the out‐of‐equilibrium analytical framework proposed. In particular, processes of change resulting from changes in technology, changes in skills, changes in expectations, and monetary shocks are considered. The analysis carried out shows that the viability of the change undertaken depends on the capacity to re‐establish the intertemporal complementarity of the production process and the intertemporal coherence of the decision process disturbed by the shock originating the process of change. This depends, in turn, on interventions assuring the availability of the required productive resources at the right moment, and the proper working of market mechanisms as represented by price and wage determination regimes.

Keywords: Coordination mechanisms; Price and wage regimes; Real and monetary shocks; viability

Chapter.  9869 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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