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Endogeneity of Credit or Nominal Rigidities?: Econometric analysis of causes of business cycles - Softcover

France, Vaclav

 
9783844308877: Endogeneity of Credit or Nominal Rigidities?: Econometric analysis of causes of business cycles

Synopsis

This book presents a theoretical model which tries to explain causes of business cycles ?uctuations and which has its roots in the Post-Keynesian stream of economic thought. According to this model, investment shocks together with endogeneity of money causes business cycles ?uctuations. This model is compared with existing New Keynesian models which assert that causes of business cycles ?uctuations are monetary policy shocks together with various nominal and real rigidities. Author uses econometric techniques(impulse-response functions and forecast error variance decomposition) to investigate which phenomenon contributes more to business cycles ?uctuations. Unfortunately, results do not enable to draw a straightforward conclusion. It seems that both phenomena play a certain role.

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About the Author

Author received his bachelor`s and master`s degree at Institute of Economic Studies of Charles University in Prague (IES). He is currently (2011) a PhD student at Center for Economic Research & Graduate Education - Economics Institute (CERGE-EI) of Charles University in Prague. Author`s research interest is macroeconomics.

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