The Inflation Tax in a Real Business Cycle Model

Cooley, Thomas F.; Hansen, Gary D.

doi:10.4324/9780203070710.ch11

Cited by 479 publications

(560 citation statements)

References 4 publications

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“…L'extension naturelle du modèle de cycles réels en économie monétaire a été présentée par Cooley et Hansen (1995). Il s'agit d'appondre une contrainte de liquidité (cash-in-advance ou CIA) au modèle de croissance néo-classique.…”

Section: De L'influence De La Monnaieunclassified

À la poursuite du Graal : le successeur d’IS-LM est-il identifié?

Danthine

2009

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RÉSUMÉOn commence à deviner les contours du successeur de IS-LM; la démarche à suivre comme la nature de l’objectif à atteindre sont aujourd’hui relativement claires. À l’aide de trois expériences spécifiques, on déduit quelques-uns des ingrédients susceptibles de faire partie de la nouvelle synthèse néo-classique. Au bout du compte, il apparaît que seule notre connaissance imparfaite de quelques faits stylisés essentiels nous tient éloigné d’un nouveau consensus.

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Section: De L'influence De La Monnaieunclassified

À la poursuite du Graal : le successeur d’IS-LM est-il identifié?

Danthine

2009

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“…Cooley and Hansen, 1989) and so the resulting steady state of the model matches particular long-run properties of the US economy.…”

Section: Functional Forms and Calibrationmentioning

confidence: 99%

“…This ratio is close to the post-war minimum considering that two-thirds to three-quarters of the US currency base is held abroad (see Porter and Judson, 1996). 9 Value added is de…ned as total bank- (Table 3a). While this value added has undoubtedly changed over the last 18 years, it is not clear how much of this measure is represented by the simple structure of …nancial intermediaries in the model.…”

Section: Functional Forms and Calibrationmentioning

confidence: 99%

Economies of Scale in Banking, Confidence Shocks, and Business Cycles

Dressler

Kersting

2013

Macroecon. Dynam.

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This paper quantitatively investigates equilibrium indeterminacy due to economies of scale (ES) in …nancial intermediation. Financial intermediation provides deposits (inside money) which can substitute with currency to purchase consumption, and depositing decisions are susceptible to non-fundamental con…dence (sunspot) shocks. With the intermediation sector calibrated to match US data: (i) indeterminacy arises for small degrees of ES; (ii) sunspot shocks qualitatively resemble monetary shocks; and (iii) monetary policies can stabilize the real impact of sunspot shocks, but only under complete information. The analysis also assesses the removal of these shocks on the volatility decline observed during the US Great Moderation.

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“…The standard deviation of disturbances to the goods production technology is calibrated so that the standard deviation of the simulated output series is near to the standard deviation of the US output, giving σ z = 0.0075 (as compared to 0.00721 in Cooley and Hansen (1989)). Persistence is set equal to ϕ z = 0.95, as is common.…”

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confidence: 99%

“…The US economy is the benchmark for calibration of parameters, which are chosen as close as possible to the values in the literature (Cooley and Hansen (1989), Cooley and Hansen (1995), Gillman and Kejak (2005)). The length of a period is assumed to be one quarter.…”

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confidence: 99%

Credit shocks in the financial deregulatory era: Not the usual suspects

Benk

Gillman

Kejak

2005

Review of Economic Dynamics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract The paper constructs credit shocks using data and the solution to a monetary business cycle model. The model extends the standard stochastic cash-in-advance economy by including the production of credit that serves as an alternative to money in exchange. Shocks to goods productivity, money, and credit productivity are constructed robustly using the solution to the model and quarterly US data on key variables. The contribution of the credit shock to US GDP movements is found, and this is interpreted in terms of changes in banking legislation during the US financial deregulation era. The results put forth the credit shock as a candidate shock that matters in determining GDP, including in the sense of Uhlig (2003). Terms of use: Documents in

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The Inflation Tax in a Real Business Cycle Model

Cited by 479 publications

References 4 publications

À la poursuite du Graal : le successeur d’IS-LM est-il identifié?

À la poursuite du Graal : le successeur d’IS-LM est-il identifié?

Economies of Scale in Banking, Confidence Shocks, and Business Cycles

Credit shocks in the financial deregulatory era: Not the usual suspects

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