The paper analyzes two questions: (i) the effect of monetary policy shock on business cycle and (ii) the extent to which a shift in a monetary policy affects the dynamics of business cycle. Unlike previous literature, to answer the questions, we measure the cycle movements by calculating an index from a number of aggregate macroeconomic series via a dynamic factor model. We find that monetary p...

Inventory fluctuations are an important phenomenon in business cycles. However, the preliminary data on inventory investment as published in the German national accounts are tremendously prone to revision and therefore ill-equipped to diagnose the current stance of the inventory cycle. The Ifo business survey contains information on the assessments of inventory stocks in manufacturing as well a...

in this study business operations and liquidity and credit risk on price fluctuations on the stock exchange since 2010 to 2013 has been tehran distance. the sample consisted of 76 company the systematic elimination method is selected. the company had a total of 304 years, in this study, the hypothesis of linear regression and correlation to analyse the data and test hypotheses eviews software i...

Critics claim that capital requirements can exacerbate credit cycles by restricting lending in an economic downturn. The introduction of Basel 2, in particular, has led to concerns that risksensitive capital charges are highly correlated with the business cycle. The Basel Committee is contemplating a revision of the Basel Accord by introducing counter-cyclical capital buffers. Others claim that...

Purpose In this study, inventories are introduced as a productive input into real-business-cycle (RBC) setup augmented with the government. Design/methodology/approach The model is calibrated to Bulgarian data for period 1999–2019. quantitative importance of presence investigated. Findings effect found be important: decreasing consumption volatility and increasing employment variability. Those ...

We study how fluctuations in money growth correlate with fluctuations in real and nominal output growth and inflation. We pick cycles from each time series that last 2 to 8 (business cycles) and 8 to 40 (longer-term cycles) years, using band-pass filters. We employ a data set from 1880 to 2001 for eleven countries, without gaps. Fluctuations in money growth do not play a systematic and importan...

This paper compares four equilibrium business cycle models with increasing returns to scale production technologies that allow for aggregate fluctuations due to self-fulfilling expectations. Necessary and sufficient conditions for the existence of stationary sunspot equilibria are derived. Numerical examples demonstrate that the degree of increasing returns necessary for the existence of statio...

This paper studies whether the Mortensen and Pissarides (MP) search and matching model can explain the observed labor market fluctuations in Japan. Although the MP model correctly predicts the observed regularities in the cyclical fluctuations of unemployment and job vacancies, it cannot generate the observed unemployment and vacancy fluctuations in response to productivity shock of reasonable ...

(1992) and Kydland (1995) for a survey of this literature. 2 Merz (1995) introduces such time delays in the form of costly search in the labor market while Christiano and Todd (1996) considers a time-to-plan investment process. M odern business cycle theories are evaluated on the basis of their ability to explain key empirical features of the postwar U.S. business cycle. The failure of nonmarke...

This paper uses data from the PSID to investigate how selective migration affects the relationship between business cycles and health. We show that, among the healthy, migration is used to insure against macroeconomic fluctuations. However, among the unhealthy, there is no relationship between migration and business cycles. In other words, illness erases a person’s ability to use migration to h...