TY - JOUR
ID - 4832
TI - An Axiomatic Analysis of the Effects of Interest Rate on the Inflation and Convergence Speed in Achiving to Equilibrium in a Banach Space
JO - Quarterly Journal of Applied Theories of Economics
JA - ECOJ
LA - en
SN -
AU - Askari, Seyed Ehsan
AU - Pourkazemi, Mohammad Hossein
AU - Biabani, Jahangir
AU - Dallali Isfahani, Rahim
AD - Ph.D Student in Economics, University of Payam Noor
AD - Associate Professor of Mthematics, University of Shahid Beheshti
AD - Assistant Professor of Economics, Payam Noor University of Tehran
AD - Professor of Economics, University of Isfahan
Y1 - 2016
PY - 2016
VL - 3
IS - 1
SP - 115
EP - 138
KW - Intrest rate
KW - Inflation
KW - Banach Space
KW - Convergence speed
KW - Existence of equilibrium
DO -
N2 - This paper provides an axiomatic analysis of the formation of equilibrium in a macro economic structure. For this purpose, primarily it is accorded to mathematical features of the prices space assume that these spaces are normed complete spaces or a “Banach spaces”. Then it is showed that the conventional macroeconomic production function is a contraction mapping, and it is proved that there exists a fixed point for the basic neoclassical macroeconomic model in a Banach space. By using a quantity theory of money framework and introducing interest rates, it is showed the formation of inflation in the macroeconomic environment. In the next step we use real analysis and numerical analysis to explain the convergence speed of macroeconomic production function in the context of barter economy, monetary economy without money interest rate, and monetary economy with money interest rate. In this space, the existing money interest rate would necessarily lead to inflation, and inflation would retard the convergence speed.
UR - https://ecoj.tabrizu.ac.ir/article_4832.html
L1 - https://ecoj.tabrizu.ac.ir/article_4832_b6ef5499a41d0ec336de5ccba9178039.pdf
ER -