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We identify an inflationary technology news shock as the leading source of business cycle variations for the postwar U.S. economy. This shock acts like a demand shock: it induces strong positive comovement in real quantities - GDP, consumption, investment - and weak positive comovement between...
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Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … experience an increase in the variance of their productivity shocks) than during normal times? In this paper, I argue that … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less …
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dynamics they induce as well as their contribution to macro volatility. Our main finding is that surprise changes in technology …
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dynamics they induce as well as their contribution to macro volatility. Our main finding is that surprise changes in technology …
Persistent link: https://www.econbiz.de/10012454968