Dressler, Scott J.; Li, Victor E. - In: Journal of Economic Dynamics and Control 33 (2009) 4, pp. 970-984
This paper presents a monetary explanation for several business-cycle facts: (i) household and business investment are procyclical, (ii) business investment lags household investment, (iii) household investment is positively correlated with M1, and (iv) household credit outstanding is positively...