[Markups and the Business Cycle]: Comment

Business Cycle Features In The Iranian Economy

Comment on A Comparison of Two Business Cycle Dating Methods

Harding and Pagan note that their stripped-down Markov-switching model (3)-(5) is an example of a standard state-space model, albeit with non-Gaussian innovations. This is indeed true of a broad class of Markov-switching models, as noted by Hamilton (1994, Section 4.1). Hence one could always use the Kalman filter in Markov-switching models to find the linear projection of the unobserved regime...

Markups and the Euro

Recent theoretical work indicates that when firms set nominal prices in advance they are exposed to business cycle risk. Risk averse firms with market power may set relatively high markups over marginal cost to offset this risk. An appropriate monetary policy could reduce the risk of pre-set nominal prices. This paper uses industry-level panel data to estimate how the exchange rate regime affec...

Bank Lending Behaviour over the Business Cycle in Iran

This paper studies bank loans over the business cycles in Iran to determine the role of Iranian banks in stabilizing credit. By estimating the long-run relations using dynamic OLS and fully modified OLS estimators, the findings show that real bank lending is positively related to real GDP in the long-run providing evidences of the pro-cyclicality of bank lending in Iran. Hence, Iranian banking ...

Analysis of the Relationship between the Business Cycle and Inflation Gap in Time-Frequency Domain

Controlling the business cycle and minimizing the inflation gap are considered as two major goals for monetary policy. Hence, the policymaker will be able to make more decisive decisions with an awareness of the dynamic relationship and causal relationship between these two variables. Accordingly, the present study uses a discrete and continuous wavelet transform to provide a new understanding ...