Since 2014
An Equilibrium Theory of the Business Cycle Under Certainty
Brazilian Review of Econometrics
View Archive Info| Field | Value | |
| Title |
An Equilibrium Theory of the Business Cycle Under Certainty
An Equilibrium Theory of the Business Cycle Under Certainty |
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| Creator |
Martins, M.A.C.; Do Senado Federal
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| Subject |
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| Description |
This paper develops a full-employment theory of the business cycle in the context of a simple equilibrium dynamic monetary model with complete information, overlapping generations and production processes. This theory is founded on three basic notions: (a.) economic agents plan to limit their own freedom of action; (b) it takes time to produce one unit of output; the productive input can be employed on alternative discrete overlapping production processes at each point in time. According to this theory, fully anticipated monetary shocks cause the kind of movements in outputs, prices and nominal incomes, which are well known as the business cyde.
This paper develops a full-employment theory of the business cycle in the context of a simple equilibrium dynamic monetary model with complete information, overlapping generations and production processes. This theory is founded on three basic notions: (a.) economic agents plan to limit their own freedom of action; (b) it takes time to produce one unit of output; the productive input can be employed on alternative discrete overlapping production processes at each point in time. According to this theory, fully anticipated monetary shocks cause the kind of movements in outputs, prices and nominal incomes, which are well known as the business cyde. |
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| Publisher |
Sociedade Brasileira de Econometria
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| Date |
1989-11-02
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/3074
10.12660/bre.v9n21989.3074 |
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| Source |
Brazilian Review of Econometrics; Vol 9, No 2 (1989); 129-153
Brazilian Review of Econometrics; Vol 9, No 2 (1989); 129-153 1980-2447 |
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| Language |
eng
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| Relation |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/3074/1969
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