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Can indeterminacy and self-fulfilling expectations help explain international business cycles? A preliminary investigation (2015)
Working Paper
McKnight, S., & Povoledo, L. Can indeterminacy and self-fulfilling expectations help explain international business cycles? A preliminary investigation

We introduce equilibrium indeterminacy into a two-country incomplete asset model with imperfect competition and analyze whether self-fulfilling, belief-driven fluctuations (i.e., sunspot shocks) can help resolve the major puzzles of international bus... Read More about Can indeterminacy and self-fulfilling expectations help explain international business cycles? A preliminary investigation.