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into the determinants of business cycles before and during the Great Moderation. Via Bayesian estimation we determine the … and they explain the volatility of many variables. We reject the hypothesis of better inventory management and improved …
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We introduce frictional financial intermediation into a HANK model. Households are subject to idiosyncratic and aggregate risk and smooth consumption through savings and consumer loans intermediated by banks. The banking friction introduces an endogenous countercyclical spread between the...
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consistent with the data. Banking regulation, while stabilizing at the aggregate level, may induce volatility at the household …
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