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A Lecture of the Taylor Rule from the Sandpile Model

Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52414#.VJdpecCAM4 Author(s) Juan L. Valderrábano López , Miguel Ángel Alonso Neira Affiliation(s) Departamento de Economía Aplicada I, FF CC Jurídicas y Sociales, URJC, Paseo Artilleros s/n. Vicálvaro (Madrid), Spain . ABSTRACT Sandpile phenomena in dynamic systems in the vicinity of criticality always appeal to a sudden break of stability with avalanches of different sizes due to minor perturbations. We can view the intervention of the Central Banks on the rate of interest as a perturbation of the economic system. It is an induced perturbation to a system that fare in vicinity of criticality according to the conditions of stabi...