New research reveals key to stabilizing macroeconomic systems with quantity constraints.
The article explores the stability of a macroeconomic system with quantity constraints. It delves into different types of equilibria, such as Walras and Non-Walrasian, and analyzes their dynamics and properties. The researchers use mathematical optimization and stability concepts to study the system's behavior. Key findings include the existence and uniqueness of equilibrium states, the stability of different types of equilibria in various scenarios, and the impact of adjustments in stocks and prices on the system's stability.