Paper #1242

Títol:

Does money matter in shaping domestic business cycles? An international investigation (with appendices)

Autors:

Fabio Canova i Tobias Menz

Data:

Juliol 2009

Resum:

We study the contribution of money to business cycle fluctuations in the US, the UK, 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.

Paraules clau:

Money, business cycles, shock transmission, inflation dynamics.

Codis JEL:

E31, E32, E52.

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

Journal of Money, Credit and Banking, 43(4), 577-609, 2011

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