New Keynesianism and Aggregate Economic Activity

Wavelet analysis of stock returns and aggregate economic activity

The relationship between stock market returns and economic activity is investigated using signal decomposition techniques based on wavelet analysis. After the application of the maximum overlap discrete wavelet transform (MODWT) to the DJIA stock price index and the industrial production index for the US over the period 1961:1-2006:10wavelet variance and cross-correlations analyses are used to ...

Consensus, Dissensus and Economic Ideas: The Rise and Fall of Keynesianism During the Economic Crisis

As the introduction to this special issue argues, the relationship between power and ideas is at the heart of debates over international financial orders, and the cycle of stability of change that we have seen over the last hundred years. Hall [1989] documents how Keynesian ideas were widely (if not universally) accepted across advanced industrialized democracies in the wake of World War II. Ru...

Monetary Policy, Fiscal Policy, and Aggregate Economic Activity in Korea

International evidence on the stock market and aggregate economic activity

Using the Johansen cointegration technique, we find empirical evidence of long run comovements between five national stock market indexes and measures of aggregate real activity including the real oil price, real consumption, real money, and real output. Real returns on these indexes are typically related to transitory deviations from the long run relationship and to changes in the macroeconomi...

Can Penal Keynesianism Replace Military Keynesianism? by L