منابع مشابه
Optimal Exchange Rate Policy and Business Cycles*
Implementation and collapse of exchange rate pegging schemes are recurrent events. A currency crisis is often followed by an economic downturn while pegging often begets a boom. In this paper I study why a benevolent central bank should pursue a monetary policy that leads to those recurrent currency crises and subsequent periods of pegging. I show that the optimal policy induces a competitive e...
متن کاملCredit Risk and Business Cycles∗
We incorporate long-term defaultable corporate bonds and credit risk in a dynamic stochastic general equilibrium business cycle model. Credit risk amplifies aggregate technology shocks. The debt-capital ratio is a new state variable and its endogenous movements provide a propagation mechanism. The model can match the persistence and volatility of output growth as well as the mean equity premium...
متن کاملSynchronized Business Cycles in East Asia and Fluctuations in the Yen/Dollar Exchange Rate
Should the Japanese yen be depreciated to revive the Japanese economy? Since the bursting of the stock-and land-market bubbles in 1990-91, the Japanese economy has fallen into its deepest postwar recession. Because fiscal policy and monetary policy are at their limits in combating recession and deflation, a possible foreign exchange policy “solution” has gained wide attention. For instance, McC...
متن کاملFirm Risk and Leverage-Based Business Cycles
I characterize cyclical fluctuations in the cross-sectional dispersion of firm-level productivity. Using the micro-estimated dispersion, or “risk,” stochastic process as an input to a baseline DSGE financial accelerator model, I assess how well the model reproduces cyclical movements in both real and financial conditions of the economy. In the model, risk shocks calibrated to micro data lead to...
متن کاملAdverse Selection, Risk Sharing and Business Cycles∗
I consider a real business cycle model in which agents have private information about an idiosyncratic shock to their value of leisure. I consider the mechanism design problem for this economy and describe a computational method to solve it. This is an important contribution of the paper since the method could be used to solve a wide class of models with heterogeneous agents and aggregate uncer...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2020
ISSN: 1556-5068
DOI: 10.2139/ssrn.3627728