The Japanese Depression in the Interwar Period: A General Equilibrium Analysis

Saijo, Hikaru

doi:10.2202/1935-1690.1614

Cited by 7 publications

(4 citation statements)

References 22 publications

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“…Episodes with that nature give more weight to other wedges. For instance, in Bridji (2013), Cho & Doblas-Madrid (2013), Saijo (2008), Sarabia (2007), Sarabia (2008), Simonovska & Söderling (2008), Hirata & Otsu (2011), Lama (2011), the labor wedge explains an important part of short-run fluctuations. Chadha & Warren (2012) and Chakraborty & Otsu (2013) are exceptions, where contagion was present, but instead of the labor wedge capturing movements in data, the investment wedge did.…”

Section: Emerging Marketsmentioning

confidence: 99%

Business cycle accounting: What have we learned so far?

Brinca,

Costa Filho,

Loria

2023

Journal of Economic Surveys

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What drives recessions and expansions? Since it was introduced in 2007, there have been hundreds of business cycle accounting (BCA) exercises, a procedure aimed at identifying classes of models that hold quantitative promise to explain economic fluctuations. This paper contributes with a software—a graphical user interface that allows practitioners to perform BCA exercises with minimal effort—and exemplifies the procedure by studying the U.S. recessions in 1973 and 1990 and reflecting upon the critiques BCA has been subject to. We look into the many equivalence theorems that the literature has produced and that allow BCA practitioners to identify the theories that are quantitatively relevant for the economic period under study. The methodological extensions that have been brought forth since BCA's original inception are addressed as well as conclusions regarding the relative contribution of each wedge: GDP and investment are usually driven by an efficiency wedge, hours worked are closely related to the labor wedge and, in an open economy extension, the investment wedge helps to explain country risk spreads on international bonds. Finally, larger changes in interest rates and currency crises are usually associated with the investment and/or the labor wedge.

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Section: Emerging Marketsmentioning

confidence: 99%

Business cycle accounting: What have we learned so far?

Brinca,

Costa Filho,

Loria

2023

Journal of Economic Surveys

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“…50 La "cartelización" promovida en la segunda mitad de los años treinta en Estados Unidos por la política de la administración Roosvelt, el "New Deal", tuvo, a juicio de Cole y Ohanian (2004), un efecto negativo sobre la tasa de crecimiento de largo plazo del producto per cápita. Un análisis similar y con conclusiones similares para el caso japonés de los años treinta se encuentra en Saijo (2008). Acemoglu (2009) presenta sus inquietudes en este mismo sentido.…”

Section: Comentarios Finales: Efectos Y Perspectivas; Resumen Y Cunclassified

La crisis reciente de Estados Unidos (2007-2008): redescubriendo la importancia del mercado de "fondos prestables"

Posada¹,

Tamayo-Castaño²

2009

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ResumenLa "sabiduría convencional" afirma que los temas de crecimiento económico se entienden con modelos clásicos, y los de corto plazo (ciclos, etc.) con los keynesianos (o neo-keynesianos). Y, en efecto, la rigidez de precios (de productos o factores) es una característica de la explicación más frecuente de un ciclo, y esto usualmente se considera un rasgo keynesiano. Con todo, las rigideces (transitorias) de precios fueron conocidas y tenidas en cuenta en los análisis pre-keynesianos de los ciclos. Varios de estos análisis son útiles para entender la crisis reciente. En lo que sigue se procura utilizar uno de estos (modificado con elementos "post-keynesianos") para explicar la coyuntura actual de Estados Unidos (y la crisis financiera de 2007 -2008). Dos puntos centrales que pretendemos defender son los siguientes: 1) la causa principal de la crisis y la recesión actual fue una política monetaria excesivamente laxa ejecutada bajo la ilusión de que podía ser contra-cíclica de manera perfecta, tanto en su intensidad como en su oportunidad; 2) una característica esencial de la crisis financiera es la pérdida transitoria de relevancia de la política monetaria de rutina (la de fijar una cierta tasa de interés en el mercado monetario) en tanto que adquieren dominancia el mercado de "fondos prestables" y las condiciones bajo las cuales se ofrecen estos fondos. AbstractThe conventional wisdom says that issues of economic growth are understood with the classical model and the short-term subjects (cycles, etc) with the Keynesian (or neo-Keynesian) model. Indeed, the rigidity of prices (of goods or factors) is a condition for the mainstream explanation of a cycle, and this trait is usually considered a Keynesian one. However, the (temporary) rigidities of prices were known and taken into account in the pre-Keynesian theories of the cycles. Several of these theories are useful to understand the recent crisis. In this article we attempt to use one of these modified with some "post-Keynesian" elements to explain the current situation of the U. S. economy and the financial crisis of 2007/2008. Two points that we intend to defend are the following: 1) the main cause of the current crisis and the recession was an overly lax monetary policy, and 2) an essential feature of the financial crisis is the temporary loss of relevance of the rutinary monetary policy (that is, to fix a certain interest rate in the money market), while the market of "loanable funds" becomes the relevant market for the determination of the interest rate and the quantity of credit.Código JEL: E32, E37, E43, E44, E58 Palabras claves: crisis financiera, auge, recesión, "fondos prestables", restricción de crédito, política monetaria ♣ Borrador para comentarios. Las opiniones y estimaciones contenidas en este documento son de la responsabilidad exclusiva de los autores y, por tanto, no comprometen a la institución para la cual trabajan ni a sus directivas. Se agradecen los comentarios y ayudas de

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“…This framework was applied to a variety of cases, starting with the case studies in the original paper, namely the Great Depression in the United States and the recession in United States in the early 1980s. Later case studies include the early 1980 recession in the United Kingdom (see Kersting, ) or the Great Depression in Japan (see Saijo, ). A common note of these studies is that the TFP and the labor wedge are the most important drivers of the business cycle.…”

Section: Introductionmentioning

confidence: 99%

Business Cycle Accounting for Peripheral European Economies

Caraiani

2016

Scottish J Political Eco

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Using the Business Cycle Accounting methodology, this paper analyzes the dynamics of the EMU‐periphery economies before and during what was called the sovereign debt crisis. TFP dynamics and the labor wedge explain most of the dynamics before and during the crisis. The bond wedge, corresponding to the risk premium, made a low contribution, moving counter‐cyclically. The capital wedge made a modest contribution to the fall in output during the crisis. Additional evidence links the dynamics of the TFP and the labor wedge with changes in the interest rates and a spike in import prices at the onset of the crisis, corresponding to the general mechanisms of the large capital inflows, in the wake of the introduction of the Euro, followed by sudden stops.

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The Japanese Depression in the Interwar Period: A General Equilibrium Analysis

Cited by 7 publications

References 22 publications

Business cycle accounting: What have we learned so far?

Business cycle accounting: What have we learned so far?

La crisis reciente de Estados Unidos (2007-2008): redescubriendo la importancia del mercado de "fondos prestables"

Business Cycle Accounting for Peripheral European Economies

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