A note on 'stability of tatonnement processes of short period equilibria with rational expectations'

In Hens [Hens, T., 1997. Stability of tatonnement processes of short period equilibria with rational expectations. Journal of Mathematical Economics 2 8, 41-67], a new adjustment process is proposed for a setting with reopenin g spot and asset markets. He argues by means of an intertemporal variant of Scarf's example that this process is more stable than the other precesses, although in general it might be more stable or less stable. This note give s further evidence showing that Hens's process is indeed more stable. The r esults contradict some of the arguments of Hens, which are corrected. (C) 1 999 Elsevier Science S.A. All rights reserved.