Non Stationary Shocks, Crises and Policy

A Real Business Cycle model of the UK is developed to account for the behaviour of UK non-stationary macro data. The model, when tested by the method of indirect inference, can explain the behaviour of main variables (GDP, real exchange rate, real interest rate). We use it to explain how "crisis" and "euphoria" are endemic in capitalist behaviour due to Non-stationarity; and we draw some policylessons.

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Year of publication:	2012
Authors:	David, Meenagh ; Patrick, Minford
Published in:	Rivista italiana degli economisti. - Società editrice il Mulino, ISSN 1593-8662. - 2012, 2, p. 191-224
Publisher:	Società editrice il Mulino
Subject:	Non-stationarity \| Productivity \| Real Business Cycle \| Bootstrap \| Indirect Inference \| Banking Crisis \| Banking Regulation

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Extent:	application/pdf text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010651605