There is now a plethora of non-linear time-series models of output over the business cycle, and considerable empirical evidence that there are key non-linear, poorly understood mechanisms at work. Inventories, though a small part of the total flow of national income, play a disproportionately...

This paper provides some empirical evidence of asymmetric price adjustment. There have been a number of models put forward recently by Tsiddon and Ball and Mankiw in which it is optimal for the firm to respond asymmetrically to cost and demand shocks. In this paper this hypothesis is...

This paper is concerned with the estimation and simulation of a model of aggregate private sector non-residential investment. Its interest in investment centres on two main issues: the first is the role of the equity market in the transmission mechanism, while the second is the possibility of...

This paper focuses on testing long run macroeconomic relations for interest rates, equity, prices and exchange rates within a model of the global economy. It considers a number of plausible long run relationships suggested by arbitrage in financial and goods markets, and uses the global vector...

We re-connect money to in.ation using Goodfriend and McCallum's (2007) model where banks supply loans to cash-in-advance constrained consumers on the basis of the value of collateral provided and the monitoring skills of banks. We show that when shocks to monitoring and collateral dominate those...