On the Optimal Rate of Structural Adjustment

The first concern of this paper is the time dimension of the adjustment process in an economic system characterized by various forms of monopolistic cornpetition. We attempt to define notions, and measures, of stability that capture the macroeconomic consequences of shocks and disturbed price signalling in markets. We want to know if, where, when and how an economy settles down on a "steady" growth path and to what extent the answer depends upon the nature of the adjustment process itself.