This paper proposes a monetary model with firm entry as a means for alleviating the difficulties of real business cycle models in reproducing the smoothness and persistence of macroeconomic variables together with the volatility of profits and markups. Simulations show that my baseline model...

In this paper we analyze the extent to which the US economy affects international business fluctuations across countries and we ask whether the nonlinear nature of the business cycle affects the degree of co-movement between countries. A multivariate nonlinear LSTAR model is estimated for the...