US volatility cycles of output and inflation, 1919 - 2004: A money and banking approach to a puzzle

Arbeitspapier

The post-1983 moderation coincided with an ahistorical divergence in the money aggregate growth and velocity volatilities away from the downward trending GDP and inflation volatilities. Using an endogenous growth monetary DSGE model, with micro-based banking production, enables a contrasting characterization of the two great volatility cycles over the historical period of 1919-2004, and enables this puzzle to be addressed more easily. The volatility divergence is explained by the upswing in the credit volatility that kept money supply variability from translating into inflation and GDP volatility.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Cardiff Economics Working Papers ; No. E2008/28

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Neoclassical ; Business Fluctuations; Cycles ; Financial Markets and the Macroeconomy
• Subject: volatility ; money and credit shocks ; growth ; inflation ; Gesamtwirtschaftliche Produktion ; Inflationsrate ; Volatilität ; Kreditmarkt ; Geldangebot ; Dynamisches Gleichgewicht ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Benk, Szilárd ; Gillman, Max ; Kejak, Michal
• Event: Veröffentlichung
• (who): Cardiff University, Cardiff Business School
• (where): Cardiff
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/65792
• Last update: 10.03.2025, 11:44 AM CET