Introduction17All these major concerns involve dynamical systems that require investigation.Some have found to involve chaotic behaviour while others involve multiple equi-libria. All three involve nonlinear equations. How do we represent these systems?How do we solve these systems? Why do multiple equilibria arise? How can wehandle the analysis in the presence of nonlinearity? These and many more ques-tions have been addressed in the literature and will be discussed in this book. Theyall involve an understanding of dynamical systems, both in continuous time and indiscrete time. The present book considers these issues, but also considers dynamicissues relevant to microeconomics. The present book also tries to make the pointthat even in the area of macroeconomics, these three systems do not constitute thewhole of the subject matter. As one moves into the realms of policy questions,open economy issues begin to dominate. For this reason, the present book coversmuch more of the open economy when discussing macroeconomic issues. Of im-
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