Artikel

Macroeconomic dynamics and the IS puzzle

The authors solve the IS puzzle for the G7 countries. They find that five of the G7 countries have the expected significant negative relationship between the output gap and the real-rate gap; the time series of the remaining two show material deviation from expected IS-curve behavior. The authors show that the observed time dependence of the interaction between the output and real-rate gaps can be represented in a parsimonious and practical manner using the theory of anelasticity that unifies partial-adjustment specifications of the IS curve.

Language
Englisch

Bibliographic citation
Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 12 ; Year: 2018 ; Issue: 2018-59 ; Pages: 1-13 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification
Wirtschaft
Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
Business Fluctuations; Cycles
Monetary Policy
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Subject
IS curve
Euler equation
inflation
anelasticity
monetary policy

Event
Geistige Schöpfung
(who)
Hawkins, Raymond J.
Nguyen, Chau N.
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2018

DOI
doi:10.5018/economics-ejournal.ja.2018-59
Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Hawkins, Raymond J.
  • Nguyen, Chau N.
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2018

Other Objects (12)