We study the process of growth and business cycles in an open economy which has access to international ¯nancial … cycle dynamics. Financial market imperfections help in replicating the empirical fact that output growth shows positive …

We study the process of growth and business cycles in an open economy which has access to international financial … cycle dynamics. Financial market imperfections help in replicating the empirical fact that output growth shows positive …

We study the process of growth and business cycles in an open economy which has access to international ¯nancial … cycle dynamics. Financial market imperfections help in replicating the empirical fact that output growth shows positive …

Keynesian. These changes can be examined in the framework provided by the theory of "transformational growth." From this …

growth and business cycles interdependent? Second, is money neutral even in the long run? Using data from the United States …-run money neutrality hypothesis. The results suggest that counter- cyclical growth models best capture the main channel of … influence between cycles and growth. A policy implication is that, if money affects the cycle, it is not neutral even in the …

divergence and lower long-run growth, whereas we find absolute convergence in expansions. The output costs of political and … financial crises are permanent on average and long-term growth is negatively linked to volatility. These results also imply that … panel data studies can help identify the sources of growth and that economic models should be capable of explaining growth …

, the welfare gain from eliminating business cycles can exceed the gain from increasing the long-term growth rate by 1 …

endogenous economic growth. In the 1st part of the paper the basics of the MWR method are described. Attention is mainly … part of the paper is devoted to the setup of a model of endogenous growth with human capital accumulation and the … of the problem which eliminates the growth in variables is then presented and the MWR method is used to solve the model …