Chaotic dynamics in a flexible exchange rate system:A study of noise effects
In this paper, we investigate by means of analytical method and numerical simulations the properties of three-dimensional business cycle model, in which foreign exchange rate is flexible and a parameter is fluctuated by noise. The model is a discrete time version of Asada (Journal of Economics, 62,...
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| Format: | Article |
| Language: | English |
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Wiley
2000-01-01
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| Series: | Discrete Dynamics in Nature and Society |
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| Online Access: | http://dx.doi.org/10.1155/S1026022600000297 |
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| _version_ | 1850208418764161024 |
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| author | Toichiro Asada Tetsuya Misawa Toshio Inaba |
| author_facet | Toichiro Asada Tetsuya Misawa Toshio Inaba |
| author_sort | Toichiro Asada |
| collection | DOAJ |
| description | In this paper, we investigate by means of analytical method and numerical simulations the properties of three-dimensional business cycle model, in which foreign exchange rate is flexible and a parameter is fluctuated by noise. The model is a discrete time version of Asada
(Journal of Economics, 62, 239–269,1995)'s continuous time open economy model without noise. We show (1) noise may suppress the burst of flexible foreign exchange rate when its behavior begins to burst as a bifurcation parameter (adjustment speed of the goods market) is increased, (2) the windows of cycles can be broken by noise, and (3) noise may reveal the hidden structures. |
| format | Article |
| id | doaj-art-96a87107daca4b7ebedec93742e646b3 |
| institution | OA Journals |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2000-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-96a87107daca4b7ebedec93742e646b32025-08-20T02:10:15ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2000-01-014430931710.1155/S1026022600000297Chaotic dynamics in a flexible exchange rate system:A study of noise effectsToichiro Asada0Tetsuya Misawa1Toshio Inaba2Faculty of Economics, Chuo University, 742-1, Higashinakano, Hachioji, Tokyo 192-0393, JapanFaculty of Economics, Nagoya City University, Mizuho-cho, Mizuho-ku, Nagoya 467-0001, JapanSchool of Education, Wasada University, 1-6-1, Nishiwaseda, Shinjuku-ku, Tokyo 169-0051, JapanIn this paper, we investigate by means of analytical method and numerical simulations the properties of three-dimensional business cycle model, in which foreign exchange rate is flexible and a parameter is fluctuated by noise. The model is a discrete time version of Asada (Journal of Economics, 62, 239–269,1995)'s continuous time open economy model without noise. We show (1) noise may suppress the burst of flexible foreign exchange rate when its behavior begins to burst as a bifurcation parameter (adjustment speed of the goods market) is increased, (2) the windows of cycles can be broken by noise, and (3) noise may reveal the hidden structures.http://dx.doi.org/10.1155/S1026022600000297Chaotic dynamicsFlexible exchange ratesNoise effectsSmall open economy. |
| spellingShingle | Toichiro Asada Tetsuya Misawa Toshio Inaba Chaotic dynamics in a flexible exchange rate system:A study of noise effects Discrete Dynamics in Nature and Society Chaotic dynamics Flexible exchange rates Noise effects Small open economy. |
| title | Chaotic dynamics in a flexible exchange rate system:A study of noise effects |
| title_full | Chaotic dynamics in a flexible exchange rate system:A study of noise effects |
| title_fullStr | Chaotic dynamics in a flexible exchange rate system:A study of noise effects |
| title_full_unstemmed | Chaotic dynamics in a flexible exchange rate system:A study of noise effects |
| title_short | Chaotic dynamics in a flexible exchange rate system:A study of noise effects |
| title_sort | chaotic dynamics in a flexible exchange rate system a study of noise effects |
| topic | Chaotic dynamics Flexible exchange rates Noise effects Small open economy. |
| url | http://dx.doi.org/10.1155/S1026022600000297 |
| work_keys_str_mv | AT toichiroasada chaoticdynamicsinaflexibleexchangeratesystemastudyofnoiseeffects AT tetsuyamisawa chaoticdynamicsinaflexibleexchangeratesystemastudyofnoiseeffects AT toshioinaba chaoticdynamicsinaflexibleexchangeratesystemastudyofnoiseeffects |