Dynamics of price-level, national income and cost of money interaction

Dynamics of a macroeconomic system in which national income, cost of money and price-level are in close interaction is studied. Such an interaction is simulated with the help of discrete dynamic system in R3. The system has a curve formed by fixed points, which describe a balanced state of money, goods and service markets. It has been shown that there is a foliation which is transversal to the curve, each layer being invariant for the system. There are layers where balanced state can be both stable and unstable. The system dynamics is changing from layer to layer