Can a model with limited labor market insurance explain standard macro and data jointly? We construct monetary in which: i) the unemployed are worse off than employed, i.e. unemployment is involuntary ii) force participation rate varies business cycle. To illustrate key features of our model, we start simplest possible framework. then integrate into medium-sized DSGE show that resulting does as...

The paper is focused on the construction of a new composite indicator intended to predict economic cycle Poland and its comparison with existing CLI used by international institutions such as OECD Eurostat. In part, this research also dedicated monitoring partial advance cyclical indicators that make up components their changes over time. explores 62 qualitative quantitative relationship develo...

An Austrian interpretation of the New Keynesian small menu cost model of the business cycle is proposed. Austrian and New Keynesian business cycle theories share the feature that the cycle is generated by rigidities which prevent the economy from adapting instantaneously to changing conditions. Austrian business cycle theory is capital-based, focusing on credit expansion which artificially lowe...

In this paper we study cyclical patterns by applying multivariate wavelet analysis. The wavelet covariance and wavelet correlation are defined and applied to the analysis of business cycles as an alternative to the traditional cross-spectrum analysis. The main findings for Slovenia are that there is a significant business cycle component in aggregate economic activity. Business cycles are asymm...