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The monetary economy and the economic crisis

Laidler, David E. W. - 2011 - Revised, January 2011

The monetary economy has properties that cannot be analyzed using the tools of today's dynamic general equilibrium analysis. Keynes's economics, far from being an aberration in the otherwise orderly evolution of modern macroeconomics from Adam Smith's ideas about the "invisible hand", was a...

Persistent link: https://www.econbiz.de/10011708307

Credit Booms, Debt Overhang and Secular Stagnation

Illing, Gerhard - 2017

Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit booms? We present a model of persistent aggregate demand shortage based on strong liquidity preferences of households, in which we incorporate financial imperfections to study...

Persistent link: https://www.econbiz.de/10012966912

Sources of business fluctuations : financial or technology shocks?

Kaihatsu, Sohei; Kurozumi, Takushi - In: Review of economic dynamics 17 (2014) 2, pp. 224-242

Persistent link: https://www.econbiz.de/10010472698

Credit, asset prices and business cycles at the global level

Dées, Stéphane - 2015

This paper assesses the role of financial variables in real economic fluctuations, in view of analysing the link between financial cycles and business cycles at the global level. A Global VAR modelling approach, which has been proved suitable for modelling country or regional linkages, is used...

Persistent link: https://www.econbiz.de/10011476350

Theories of finance and financial crisis : lessons for the Great Recession

Dodig, Nina; Herr, Hansjörg - 2015

This paper presents an overview of different models which explain financial crises, with the aim of understanding economic developments during and possibly after the Great Recession. In the first part approaches based on efficient markets and rational expectations hypotheses are analyzed, which...

Persistent link: https://www.econbiz.de/10010491508

Macroprudential policy with capital buffers

Schroth, Josef - 2019

This paper studies optimal bank capital requirements in a model of endogenous bank funding conditions. I find that requirements should be higher during good times such that a macroprudential "buffer" is provided. However, whether banks can use buffers to maintain lending during a financial...

Persistent link: https://www.econbiz.de/10011975618

Allocative efficiency of UK firms during the Great Recession

Gerth, Florian - 2017

This paper argues that the fall and persistently low level of UK Total Factor Productivity (TFP) following the Great Recession was caused by the turnover (entry and exit) of firms, rather than by resource misallocation between firms within industries. I conduct a misallocation exercise employing...

Persistent link: https://www.econbiz.de/10011717067

A post-crisis slump in Europe : a business cycle accounting analysis

Gerth, Florian; Otsu, Keisuke - 2016

is the most important driver of the European Great Recession and that this adverse shock persists throughout our sample …

Persistent link: https://www.econbiz.de/10011530229

Should banks be worried about dividend restrictions?

Schroth, Josef - 2023 - Last updated: September 27, 2023

Countercyclical bank capital requirements have emerged as a popular regulatory tool to help smooth financial cycles. The idea is to reduce capital requirements when exogenous shocks cause aggregate bank capital to decrease so that regulation does not needlessly constrain banks' supply of credit....

Persistent link: https://www.econbiz.de/10014456622

Monetary Policy and Stock Market Boom-Bust Cycles

Christiano, Lawrence J.; Ilut, Cosmin L.; Motto, Roberto; … - 2021

overoptimistic. We find that it is difficult to generate a boom-bust cycle (a period in which stock prices, consumption, investment … and employment all rise and then crash) in response to such a news shock, in a standard real business cycle model. However … a welfare-reducing boom-bust cycle in response to a news shock. We explore the possibility that integrating credit …

Persistent link: https://www.econbiz.de/10013316465