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Numerical solution of Kiyotaki & Moore (1997) "Credit Cycles".

Jupyter and Google Colab notebooks reproducing the numerical solution of Kyotaki & Moore (1997). This Notebook reproduces the main output of the paper (figure 3, paper available in the doc folder). It uses a shooting algorithm to find the Initial Value Condition that reproduces the cyclicality of the full non-linear model, while converging to the steady state in the long run.

Figure produced by the Python code

fig_3

Original Figure

Kiyotaki_Moore_fig_3

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First numerical assignment for EC539

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