Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money

Abstract : 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.
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Communication dans un congrès
Workshop on Economic Heterogeneous Interacting Agents ESHIA/WEHIA 2010, Jun 2010, Alessandria, Italy
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https://hal-unice.archives-ouvertes.fr/hal-00661956
Contributeur : Pascal Seppecher <>
Soumis le : mercredi 7 juin 2017 - 17:53:34
Dernière modification le : mardi 13 juin 2017 - 01:07:29

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Pascal Seppecher. Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money. Workshop on Economic Heterogeneous Interacting Agents ESHIA/WEHIA 2010, Jun 2010, Alessandria, Italy. <hal-00661956v2>

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