Discrete Dynamics in Nature and Society
Volume 6 (2001), Issue 3, Pages 207-212

On “open-economy macroeconomics using models of closed systems”

Romar Correa and Shubhada Damle

Department of Economics, University of Mumbai, Vidyanagari, Mumbai 400 098, India

Received 29 September 2000

Copyright © 2001 Romar Correa and Shubhada Damle. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


International macroeconomic crises occur because of the enlargement of the dimension of the state space within which economies operate. Our focus is the recent financial turbulence worldwide in which (i) banks had a role to play and (ii) whole systems collapsed. We validate these propositions in the context of the qualitative theory of differential equations. The economic framework used is that of Wynne Godley.