Structural Stability Analysis in a Dynamic IS-LM-AS Macroeconomic Model with Inflation Expectations

In this article, we carry out the structural analysis of an IS-LM-AS macroeconomic model with adaptive inflation expectations, exploring presence a possible local bifurcation. We prove that is structurally unstable when speed which economic agents adjust their expectations about future equal to inverse semi-elasticity real money demand respect nominal interest rate since periodic solutions are lost parameter suffer any small change, ceteris paribus. Additionally, phase portraits instantaneous change rate, and numerically simulated in ℝ 3 MATLAB for three asymptotically locally stable cases degenerate Hopf Finally, our results show that, specifically, case pure conjugate complex eigenvalues, economy could enter periods inflationary/deflationary spiral greater magnitude balances regardless its initial state.