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"With an estimated New Keynesian model, this paper compares the "Great Recession" of 2007-09 to its two immediate predecessors in 1990-91 and 2001. The model attributes all three downturns to a similar mix of aggregate demand and supply disturbances. The most recent series of adverse shocks...
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The author proposes a micro-founded framework that incorporates an active banking sector into a dynamic stochastic general-equilibrium model with a financial accelerator. He evaluates the role of the banking sector in the transmission and propagation of the real effects of aggregate shocks, and...
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funds from households to entrepreneurs subject to a well defined loan production function. The loan productivity shock is … treated as the supply side financial disturbance. Together with NT.s net worth shock that resembles the credit demand … simultaneous contraction of entrepreneurial net wealth. This new introduced shock has significant explanatory power for the …
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