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Reza Moosavi Mohseni

2015

GMM estimator

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Full-Text Articles in Macroeconomics

Chaotic Behavior In Monetary Systems: Comparison Among Different Types Of Taylor Rule, Reza Moosavi Mohseni Dr., Wenjun Zhang, Jiling Cao Jul 2015

Chaotic Behavior In Monetary Systems: Comparison Among Different Types Of Taylor Rule, Reza Moosavi Mohseni Dr., Wenjun Zhang, Jiling Cao

Reza Moosavi Mohseni

The aim of the present study is to detect the chaotic behavior in monetary economic relevant dynamical system. The study employs three different forms of Taylor rules: current, forward, and backward looking. The result suggests the existence of the chaotic behavior in all three systems. In addition, the results strongly represent that using expectations in policy rule especially rational expectation hypothesis can increase complexity of the system and leads to more chaotic behavior.