This is the deflation policy for the economy of Example 9.10 in Li (2019), which is discussed in Example 9.12.
Example9.10.policy.deflation(time, state, state.history)the current time.
a list indicating the current economic state including prices, exchange levels (i.e. activity levels, production levels or utility levels) and supplies.
the history of economic states.
Example9.10.policy.deflation returns a list indicating the modified current economic state including prices, exchange levels (i.e. activity levels, production levels or utility levels) and supplies.
LI Wu (2019, ISBN: 9787521804225) General Equilibrium and Structural Dynamics: Perspectives of New Structural Economics. Beijing: Economic Science Press. (In Chinese)
Example9.10;
Example9.10.policy.interest.rate;
Example9.10.policy.money.supply;
Example9.10.policy.quantitative.easing;
Example9.10.policy.tax;
Example9.10.policy.deficit.fiscal