201-208

• Neck, Reinhard

We show an application of decentralized control theory to a macroeconomic model of unemployment and inflation. Fiscal and monetary policies are assumed to be designed by different institutions, namely the government and central bank respectively, and both policy-makers are assigned particular targets and may have different information. It is shown that the economic system can be stabilized by decentralized feedback. An interpretation in economic terms of the stabilizing controls and the conditions for stabilizability is given.

• Economics and Business
• Mathematics

• Economic policy
• Macroeconomics
• Statistics

decentralized control, large-scale systems, stability properties, stabilizability, stabilizing feedback, fixed modes, economic systems

Περιέχει βιβλιογραφία

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