How do financial frictions affect the response of an economy to aggregate shocks? In this paper, we address this … liquid assets to smooth individual income shocks. We show that the response of this economy to aggregate shocks depends on … reserves and the response of the economy tends to be larger. In this case, agents expect to be liquidity constrained and, due …

-inflation economy. Do one-time inflationary shocks give rise to long-term persistence, or inertia? Do balance of payments' shocks …

This chapter develops a toolkit of neoclassical macroeconomic models, and applies these models to the U.S. economy from … of the relatively stable postwar U.S. economy, and also for the Great Depression and World War II. The models presented …

shifts. By shocks we mean sudden jolts to the world economy in the form of financial crises and deep recessions, or wars and …

economy coincided with uncertainty regarding access to supply. We present a modified commodity storage model that fully …

evidence for the past 20 or 30 years and which has produced mixed results. We then examine the role of global shocks and shock …