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decomposition. The results indicate that contractionary monetary policy shock, which led to increased external finance premium …, negatively affected the manufacturing sector and decreased total output. In other words, the monetary shock negatively affected …
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In order to better understand relationships between the real economy and financial economy, it is necessary to formulate a model of financing. New Keynesian theory emphasizes that a firm’s net worth influences investment decisions and business cycles under an imperfect capital market. We have...
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