Purpose – Considering the sectoral balance approach of Godley, and focusing only on the two main components of the private sector balance for the US economy (household and non‐financial corporate balance), the purpose of this paper is to investigate the relationship between these two...

Purpose – Considering the sectoral balance approach of Godley, and focusing only on the two main components of the private sector balance for the US economy (household and non-financial corporate balance), the purpose of this paper is to investigate the relationship between these two sectors,...

Purpose – Considering the sectoral balance approach of Godley, and focusing only on the two main components of the private sector balance for the U.S. economy (household and non-financial corporate balance), we investigate the relationship between these two sectors, the financial variables,...

We present an augmented stochastic version of the Solow neoclassical growth model to examine whether financial factors -- expressed as deviations from their trend -- represent important business cycle drivers.Our novel framework is used to study the dynamics of the US growth over the period...

This paper investigates private net saving in the US economy - divided into its principal components, households and (nonfinancial) corporate financial balances - and its impact on the GDP cycle from the 1980s to the present. Furthermore, we investigate whether the financial markets (stock...

This paper investigates the relationship between asset markets and business cycles with regard to the U.S. economy. We consider the Goldman Sachs approach (2003) developed to study the dynamics of financial balances. By means of a small econometric model we find that asset market dynamics are...

This paper investigates private net saving in the US economy - divided into its principal components, households and (nonfinancial) corporate financial balances - and its impact on the GDP cycle from the 1980s to the present. Furthermore, we investigate whether the financial markets (stock...

This paper investigates the relationship between asset markets and business cycles with regard to the United States economy. We consider the Goldman Sachs approach (2003) developed to study the dynamics of financial balances. By means of a small econometric model we find that asset market...