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I provide more evidence on the behavior of small and large firms, employing the Flow of Funds data, the QFR data and other sources. The empirical test to examine behavior of small and large firms is conducted in two ways: (1) by different episodes, tight monetary policy episodes and business...
Persistent link: https://www.econbiz.de/10011590970
The core problem of both the Great Depression and the 2008/2009 economic crisis was deflation. A review of the Great Depression examines the long, slow intellectual and political process that finally led to a correct understanding of how deflation arose and the difficulty of addressing it with...
Persistent link: https://www.econbiz.de/10012983282
the private sector, and money, which is created by the central bank. Bubbles and money share many features, but they also … investment, the rents from money creation accrue to the central bank. Second, while bubbles are driven by market psychology, and … can rise and fall according to the whims of the market, money is under the control of the central bank. We characterize …
Persistent link: https://www.econbiz.de/10012902889
The Great Moderation, the significant decline in the variability of economic activity, provides a most remarkable feature of the macroeconomic landscape in the last twenty years. A number of papers document the beginning of the Great Moderation in the US and the UK. In this paper, we use the...
Persistent link: https://www.econbiz.de/10014215633
Policy reforms aimed at boosting long-run growth often have side effects – positive or negative – on an economy’s vulnerability to shocks and their propagation. Macroeconomic shocks as severe and protracted as those since 2007 warrant a reconsideration of the role growth-promoting policies...
Persistent link: https://www.econbiz.de/10014151193
After the Brexit referendum the behavior of the UK economy defied widespread expectations, as it did not exhibit a V-shaped recession, but a slow decline in production. We show that this pattern of propagation arises when uncertainty is about future, rather than current fundamentals, and if the...
Persistent link: https://www.econbiz.de/10012259750
Media coverage of monetary policy actions is a central channel of a central bank's communication with the wider public …
Persistent link: https://www.econbiz.de/10003375096
Persistent link: https://www.econbiz.de/10008859079
Persistent link: https://www.econbiz.de/10009238059
Humans act based on the ideas they adopt and apply to circumstance with the intensity of action derived from the associated emotions. It follows that in any society the presentation of the ideas to citizens a major driver of citizen opinion and hence a major driver of social development. After...
Persistent link: https://www.econbiz.de/10012859902