Gradualismo, ineficacia e inestabilidad cíclica

Abstract

The present article considers the possible effects of a low planned rate of adjustment of a policy instrument, when the latter has a critical level beyond which it is subject to redardatory forces arising out of the environment. It is shown that, under different adjustment rules, the variable in question may then tend to oscillate steadily with amplitude and frequency independent of the initial conditions, without ever attaining the desired value. As a particular application, a model cyclical growth resulting from gradualist policies is set up.