Umfang:
1 Online-Ressource (circa 38 Seiten)
,
Illustrationen
ISBN:
9781513571676
Serie:
IMF working paper WP/21, 67
Inhalt:
Where do economic cycles come from? This paper contemplates an utmost minimalistic model and underlying theory that rest on two assumptions for letting them emerge endogenously: (1) the presence of interest-bearing debt; and (2) a degree of downward nominal wage rigidity. Despite its parsimony, the model generates well-behaved, self-evolving limit cycles and replicates six essential empirical facts: (1) booms are long- while recessions short-lived; (2) leverage is procyclical; (3) firm profit and wage shares in GDP are counter- and procyclical, respectively; (4) Phillips curves are downward-sloping and convex, and Okun's law relation is replicated; (5) default cascades arise endogenously at the turning points to recessions; (6) lending spreads are countercyclical. One can refer to the model as being of a Dynamic Stochastic General Disequilibrium (DSGD) kind
Weitere Ausg.:
Erscheint auch als Druck-Ausgabe Gross, Marco Beautiful Cycles: A Theory and a Model Implying a Curious Role for Interest Washington, D.C. : International Monetary Fund, 2021 ISBN 9781513571676
Sprache:
Englisch
Schlagwort(e):
Graue Literatur
DOI:
10.5089/9781513571676.001
