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Towards technology-news-driven business cycles

Di Casola, Paola; Sichlimiris, Spyridon - 2018

We identify an inflationary technology news shock as the leading source of business cycle variations for the postwar U ….S. economy. This shock acts like a demand shock: it induces strong positive comovement in real quantities - GDP, consumption …, investment - and weak positive comovement between real quantities and inflation, contrary to the view that anticipated …

Persistent link: https://www.econbiz.de/10011930326

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

Monetary Misperception, Rational Expectations and the Austrian Theory of the Business Cycle

Manish, G.P. - 2018

consumers and entrepreneurs with rational expectations make erroneous investment decisions driven by misperceptions regarding …

Persistent link: https://www.econbiz.de/10012935673

Chapter 26. Neoclassical Models in Macroeconomics

Hansen, G.D.; Ohanian, L.E. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 2043-2130). 2016

This chapter develops a toolkit of neoclassical macroeconomic models, and applies these models to the US economy from 1929 to 2014. We first filter macroeconomic time series into business cycle and long-run components, and show that the long-run component is typically much larger than the...

Persistent link: https://www.econbiz.de/10014024270

Monetary non-neutrality in a multisector economy : the role of risk-sharing

Lee, Jae Won; Lee, Seunghyeon - 2021

We show that the extent of risk-sharing among heterogeneous workers is adeterminant of the degree of monetary non-neutrality in a multisector sticky-price model. Workers are employed in different sectors of the economy and, as a consequence, earn different wages. The inability of workers to...

Persistent link: https://www.econbiz.de/10013194728

A small New Keynesian model to analyze business cycle dynamics in Poland and Romania

Nalban, Valeriu - In: Contemporary economics 9 (2015) 3, pp. 319-336

observed variables. Shock decompositions of the output and the inflation rate revealed the driving forces of the business …

Persistent link: https://www.econbiz.de/10011392289

The Real Effects of Monetary Shocks : Evidence from Micro Pricing Moments

Hong, Gee Hee; Klepacz, Matthew; Pasten, Ernesto; … - 2021

This paper evaluates the informativeness of eight micro pricing moments for monetary non-neutrality. Frequency of price changes is the only robustly informative moment. The ratio of kurtosis over frequency is significant only because of frequency, and insignificant when non-pricing moments are...

Persistent link: https://www.econbiz.de/10013213499

The Real Effects of Monetary Shocks : Evidence from Micro Pricing Moments

Hong, Gee Hee - 2020

Cross-sectional variation in micro data can be used to empirically evaluate sufficient statistics for the response of aggregate variables to policy shocks of interest. We demonstrate an easy-to-use approach through a detailed example. We evaluate the sufficiency of micro pricing moments for the...

Persistent link: https://www.econbiz.de/10012850046

An Assessment of Inflation Targeting in a Quantitative Monetary Business Cycle Framework

Cho, Dooyeon - 2013

This paper examines the effectiveness of inflation targeting to stabilize the real economy of the advanced countries where inflation targeting was adopted in the early 1990s. This paper employs the monetary business cycle accounting methodology recently developed by Šustek (2011) which is an...

Persistent link: https://www.econbiz.de/10013076757

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