Kejak, Michal; Gillman, Max; Benk, Szilard - Society for Economic Dynamics - SED - 2008
We explain the close correlation of volatilities of GDP growth and inflation over the 1919-2004 period, using credit and money shocks that have "bad" and "good" effects that are defined in terms of their effects on the spectral variation in GDP. With these shocks, plus standard TFP productivity...