IDEAS home Printed from https://ideas.repec.org/h/pal/intecp/978-1-4039-3961-6_6.html
   My bibliography  Save this book chapter

Learning about Trends: Spending and Credit Fluctuations in Open Economies

In: Monetary Theory as a Basis for Monetary Policy

Author

Listed:
  • Daniel Heymann

    (Torcuato di Tella Institute and University of Buenos Aires)

  • Martin Kaufman

    (International Monetary Fund)

  • Pablo Sanguinetti

    (University Torcuato di Tella)

Abstract

This chapter is inspired by an old theme. The view that misperceptions about the future outcomes of current plans can generate business fluctuations has a long tradition in the literature. Theories that allow for the existence of intertemporal co-ordination failures can have different specific features (see Leijonhufvud (1968, 1981)). They have in common the argument that agents decide on the basis of a less than perfect knowledge of the ‘laws of motion’ of the environment, and that the consequent difficulties in forming expectations can have noticeable macroeconomic consequences. In particular, a class of cyclical ups and downs may emerge when agents cannot forecast accurately the characteristics of the economy’s growth path.

Suggested Citation

  • Daniel Heymann & Martin Kaufman & Pablo Sanguinetti, 2001. "Learning about Trends: Spending and Credit Fluctuations in Open Economies," International Economic Association Series, in: Axel Leijonhufvud (ed.), Monetary Theory as a Basis for Monetary Policy, chapter 6, pages 173-214, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-4039-3961-6_6
    DOI: 10.1007/978-1-4039-3961-6_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fanelli, José María, 2002. "Growth, instability and the convertibility crisis in Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    2. Martín Guzmán & Martín Fiszbein, 2011. "Un Marco para el Análisis de los Procesos Macroeconómicos en la obra de Prebisch," Department of Economics, Working Papers 084, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    3. Daniel Heymann, 2008. "Macroeconomics of Broken Promises," Chapters, in: Roger E.A. Farmer (ed.), Macroeconomics in the Small and the Large, chapter 4, Edward Elgar Publishing.
    4. Juan Brichetti & Daniel Heymann & Pedro Juarros & Gustavo Montero, 2019. "Expectations, Coordination Failures and Macro Crises," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2019-46, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:intecp:978-1-4039-3961-6_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.