Does Money Matter in Shaping Domestic Business Cycles? An International Investigation
Year: 2011
Type: article
Abstract: We study the contribution of money to business-cycle fluctuations in the United States, the United Kingdom, Japan, and the euro area using a small-scale structural monetary business cycle model. Constrained likelihood-based estimates of the parameters are provided and time instabilities analyzed. Real balances are statistically important for output and inflation fluctuations. Their contribution changes over time. Models giving money no role provide a distorted representation of the sources of cyclical fluctuations, of the transmission of shocks, and of the events of the last 40 years.
Authors: FABIO CANOVA, TOBIAS MENZ
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2140221967