How Do Business and Financial Cycles Interact
TLDR
The authors analyzes the interactions between business and financial cycles using an extensive database covering 44 countries for the period 1960:1-2010:4 and shows that there are strong linkages between the different phases of business and finance cycles.About:
This article is published in Journal of International Economics.The article was published on 2012-05-01 and is currently open access. It has received 378 citations till now. The article focuses on the topics: Financial market & Recession.read more
Citations
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Sudden Stops, Financial Crises, and Leverage
TL;DR: In this article, a business cycle model with an endogenous collateral constraint that induces amplification and asymmetry in the responses of macro-aggregates to shocks is presented, and the evidence from Sudden Stops in emerging economies shows that financial crashes are generally followed by major economic crises.
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Curbing the Credit Cycle
TL;DR: In this article, a macro-prudential policy could curb these credit cycles, both through raising the cost of maintaining risky portfolios and through an expectations channel that operates via banks' perceptions of other banks' actions.
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Macroeconomics after the Crisis: Time to Deal with the Pretense-of-Knowledge Syndrome
TL;DR: The authors argue that the complexity of macroeconomic interactions limits the knowledge we can ever attain, and that we need to place this fact at the center of our analysis, and seek analytical tools and macroeconomic policies that are robust to the enormous uncertainty to which we are confined.
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Financial Intermediation and Macroeconomic Analysis
TL;DR: In this article, the authors discuss why neither standard macroeconomic models that abstract from financial intermediation nor traditional models of the "bank lending abstract from fi nancial intermediation and traditional bank lending channel" are adequate as a basis for understanding the recent crisis.
ReportDOI
Land-price dynamics and macroeconomic fluctuations
Zheng Liu,Pengfei Wang,Tao Zha +2 more
TL;DR: In this paper, the authors argue that positive co-movements between land prices and business investment are a driving force behind the broad impact of land-price dynamics on the macroeconomy.
References
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Book
General Theory of Employment, Interest and Money
TL;DR: In this article, a general theory of the rate of interest was proposed, and the subjective and objective factors of the propensity to consume and the multiplier were considered, as well as the psychological and business incentives to invest.
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The General Theory of Employment, Interest and Money.
Journal ArticleDOI
Bank Runs, Deposit Insurance, and Liquidity
TL;DR: The authors showed that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits, and showed that there are circumstances when government provision of deposit insurance can produce superior contracts.
BookDOI
This Time Is Different: Eight Centuries of Financial Folly
Carmen Reinhart,Kenneth Rogoff +1 more
TL;DR: This Time Is Different as mentioned in this paper presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes.
Posted ContentDOI
Agency Costs, Net Worth, and Business Fluctuations.
Mark Gertler,Ben S. Bernanke +1 more
TL;DR: The authors developed a simple neoclassical model of the business cycle in which the condition of borrowers' balance sheets is a source of output dynamics, and the mechanism is that higher borrower net worth reduces the agency costs of financing real capital investments.
Related Papers (5)
Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008
Moritz Schularick,Alan M. Taylor +1 more