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Persistent link: https://www.econbiz.de/10009704693
This paper attempts to assess whether money can generate persistent economic" fluctuations in dynamic general equilibrium models of the business cycle. We show that a small" nominal friction in the goods market can make the response of output to monetary shocks large" and persistent if it is...
Persistent link: https://www.econbiz.de/10013248244
This paper attempts to assess whether money can generate persistent economic" fluctuations in dynamic general equilibrium models of the business cycle. We show that a small" nominal friction in the goods market can make the response of output to monetary shocks large" and persistent if it is...
Persistent link: https://www.econbiz.de/10012472553
model has in addition a credit productivity shock. The paper compares the performance of the models in explaining the … puzzles of the monetary business cycle theory. The credit model improves the ability to explain the procyclic movement of …
Persistent link: https://www.econbiz.de/10011516921
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. We find that the business cycle dynamics in the OLG model in response to both a technology shock and a monetary shock are … hours in the OLG model decrease in response to a positive technological shock, since for young workers the income effect …
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