Imperfect information about financial frictions and consequences for the business cycle
نویسندگان
چکیده
منابع مشابه
Monetary Business Cycle Models: Imperfect Information∗
Business cycle theories based on incomplete information start from the premise that key economic decisions on pricing, investment or production are often made on the basis of incomplete knowledge of constantly changing aggregate economic conditions. As a result, decisions tend to respond slowly to changes in economic fundamentals, and small or temporary economic shocks may have large and long-l...
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Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the author. No responsibility for them should be attributed to the Bank of Canada. Abstract This paper builds a two-country DSGE model to study the quantitative impact of financial frictions on business cycle co-movements when investor...
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B efore the incidence of the financial crisis in 2008, the financial sector was ignored in the most of business cycles analyses. It was assumed that the financial sector played no independent role in describing business cycle fluctuations and followed the real part of the economy. In recent years, modeling financial frictions have been much considered in business cycles literature. T...
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ژورنال
عنوان ژورنال: Review of Economic Dynamics
سال: 2016
ISSN: 1094-2025
DOI: 10.1016/j.red.2016.07.004