Year: 2010
Author: Kakes, Jan, Ullersma, Cees
Credit and Capital Markets – Kredit und Kapital, Vol. 43 (2010), Iss. 3 : pp. 321–337
Abstract
Financial Acceleration of Booms and Busts
For a panel of 20 industrialized countries from 1970 through 2002, we analyze the role of financial variables in economic cycles. We focus on equity busts, which are considered a proxy for downward revisions of economic prospects. Particularly in the second half of our sample, we find that financial factors have explanatory power. This suggests that the financial accelerator has become more important over time. In this environment, the typical bust is followed by a substantial reduction in the nominal policy interest rate. (JEL E44, E32)
Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/kuk.43.3.321
Credit and Capital Markets – Kredit und Kapital, Vol. 43 (2010), Iss. 3 : pp. 321–337
Published online: 2010-07
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 17
Author Details
-
Housing, Consumption and Monetary Policy: How Different are the U.S. And the Euro Area?
Musso, Alberto | Neri, Stefano | Stracca, LivioSSRN Electronic Journal, Vol. (2011), Iss.
https://doi.org/10.2139/ssrn.1849830 [Citations: 30] -
Housing, consumption and monetary policy: How different are the US and the euro area?
Musso, Alberto | Neri, Stefano | Stracca, LivioJournal of Banking & Finance, Vol. 35 (2011), Iss. 11 P.3019
https://doi.org/10.1016/j.jbankfin.2011.04.004 [Citations: 277]