Abstract
This chapter consists of two parts: The first develops the application of process analysis to closed economies (Moore 2006). Economies are complex systems where all variables are continuously changing. Process analysis attempts to explain and, when possible, predict the short-run ordinal movement of selected variables. Complex systems have no tendency to reach an equilibrium configuration where all change has ceased. In consequence for complex system equilibrium analysis is useless, and easily leads to erroneous conclusions.
This chapter is based on Moore (2006).
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© 2007 Basil Moore
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Moore, B. (2007). Does Inflation Targeting Increase the Deflationary Bias in the World Economy?. In: Arestis, P., Hein, E., Le Heron, E. (eds) Aspects of Modern Monetary and Macroeconomic Policies. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627345_2
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DOI: https://doi.org/10.1057/9780230627345_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-28354-5
Online ISBN: 978-0-230-62734-5
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