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Estimates of cyclically-adjusted budget balances, correcting actual government budget balances for business cycle fluctuations, are produced by many institutions. This paper presents an alternative approach for the cyclical adjustment of budget balances. The approach is based on a disaggregated...
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Oligopolistic competition in the banking sector and risk in the real economy are important characteristics of developed economies, but so far they have mostly been abstracted from monetary models. We build a dynamic general equilibrium model of monetary policy transmission that incorporates both...
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This paper presents empirical evidence supporting the view that US monetary conditions matter for firms in the global capital market. We show the effects of three risk measures, domestic bank interest rates spreads, US bank interest rates spread, and US market price of interest rate risk on the...
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This paper analyses the theoretical and policy implications of assuming firm-specific lumpy investment behaviour by … firms and compares such implications to those occurring when adopting different investment specifications in a new …-Keynesian framework. We develop numerical simulations of the lumpy investment model by Sveen and Weinke (2007) and of other five …
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