We provide a methodology to study the role of market distortions on the emergence of indeterminacy and bifurcations. Most of the speci…c market imperfections considered in the related literature are particular cases of our framework. Comparing them we obtain several equivalence results in terms of local dynamic properties, highlighting the main chanels and classes of distortions responsible for indetermi- nacy. Our methodolgy consists in introducing general speci…cations for the elasticities of the crucial functions de…ning the aggregate equi- librium dynamics of the model. This allows us to study how market distortions in‡uence the range of values for the elasticity of inputs substitution under which local indeterminacy and bifurcations occur. Applying this methodology to theWoodford (1986) framework we …nd that distortions in the capital market, per se, do not play a major role. We further show that, for empirically plausible values of elasticity of substitution between inputs, indeterminacy requires a minimal degree of distortions. This degree seems to be high under output market distortions, while with labor market distortions the required degree is empirically plausible.