On the complete instability of empirically implemented dynamic Leontief models

On theoretical grounds, real world implementations of forward-looking dynamic Leontief systems were expected to be stable. Empirical work, however, showed the opposite to be true: all investigated systems proved to be unstable. In fact, an extreme form of instability ('complete instability') appeared to be the rule. In contrast to this, backward-looking models and dynamic inverse versions appeared to be exceptionally stable. For this stability-instability switch a number of arguments have been put forward, none of which was convincing. Dual (in)stability theorems only seemed to complicate matters even more. In this paper we offer an explanation. We show that in the balanced growth case--under certain conditions--the spectrum of eigenvalues of matrix D equivalent to (I - A)-1B, where A stands for the matrix of intermediate input coefficients and B for the capital matrix, will closely approximate the spectrum of a positive matrix of rank one. From this property the observed instability properties are easily derived. We argue that the employed approximations are not unrealistic in view of the data available up to now

One Rule of Law Project in Post-Soviet Russia

One Rule of Law Project in Post-Soviet Russia is published as Chapter 9 of the book At Home Abroad: Friendship First - A Look at Rule of Law Projects and Other International Insights, (ed. Joseph Nadeau, New York: Austin Macauley Publishers LLC, 2019). This book provides personal insights into an international cooperative effort to promote the rule of law in emerging democracies around the world. Professor Scherr\u27s chapter examines the cultural context within a study of the rule-of-law project that was conducted between 1999 and 2004 in Vologda, Russia

A survey of environmental problems in Eastern Europe

This paper deals with the increasing interaction of economic and environmental issues in Eastern Europe. The paper starts with a discussion of environmental problems in these formerly centrally planned economies. The grave environmental problems these countries face are surveyed and an explanation is provided in terms of the nature of the communist system. While a solution must be sought in an international cooperation context, involving the developed West European countries, many emerging international cooperation schemes inspired by environmental economic theory are no longer effective in the light of the disastrous loss of competitiveness of East European industries. New initiatives on the part of West European countries seem to be called for

Is inflation all due to money?

Inflation (Finance)

Money stock control

Money supply

Alternative measures of the monetary base

Money supply ; Bank reserves

Monetary effects of the treasury sale of gold

Gold

Relative movements in wages and profits

Wages

The puzzling growth of the monetary aggregates in the 1980's

Monetary theory ; Money supply

The implementation problem of monetary policy

Monetary policy - United States