Accolley, Delali (2018): Accounting for Busines Cycles in Canada: II. The Role of Money.
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Abstract
I have explained business cycles in Canada focusing on the role of money. To do that, I have used both empirical and theoretical models. The empirical investigations include performing causality tests and computing impulse responses based on structural and co-integrated vector autoregressive models. The theoretical models consist of RBC and new-Keynesian models. Some of these theoretical models are: the inflation tax, the inflation and tax code, the sticky price, and the financial accelerator models.
The empirical models indicate monetary disturbances are instrumental in business cycle fluctuations but do not necessarily cause them. The theoretical models also point out that monetary disturbances contribute to business cycle fluctuations but not as much as technological change. Some channels through which they propagate are: nominal capital gain tax, price stickiness, and deteriorating financial conditions. Price stickiness turns out to play a major r
Item Type: | MPRA Paper |
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Original Title: | Accounting for Busines Cycles in Canada: II. The Role of Money |
Language: | English |
Keywords: | Business Cycles, Macroeconomics, Monetary Policy, Sticky Prices, Vector Autoregression, Vector Error Correction. |
Subjects: | E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E37 - Forecasting and Simulation: Models and Applications E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy |
Item ID: | 85481 |
Depositing User: | Delali Accolley |
Date Deposited: | 10 Apr 2018 11:45 |
Last Modified: | 29 Sep 2019 02:41 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/85481 |