A LOOK AT THE U.S. BUSINESS CYCLES THROUGH THE LENS OF A TANK MODEL

2020 ◽  
pp. 1-19
Author(s):  
Yongseung Jung
Keyword(s):  
Great Recession ◽  
New Keynesian ◽  
Tank Model ◽  
The Great Recession ◽  
Keynesian Model ◽  
Monetary Policy Shock ◽  
Post War ◽  
The 1960S ◽  
The Cost

This paper sets up a two-agent new Keynesian model to explore the role of financial frictions over the post-war U.S. business cycle. The estimated model via maximum likelihood shows that the share of constrained households which has been substantial since the 1960s has significantly increased during the Great Recession. It also finds that the cost-push shock has been most important in explaining the behavior of the detrended output. The cost-push shock has also played a pivotal role in the fluctuation of inflation during the Great Recession, while the monetary policy shock which has been important in the behavior of inflation before the financial crisis has a negligible role during the Great Recession.

scholarly journals Understanding the Great Recession

2015 ◽  
Vol 7 (1) ◽  
pp. 110-167 ◽  
Author(s):  
Lawrence J. Christiano ◽  
Martin S. Eichenbaum ◽  
Mathias Trabandt
Keyword(s):  
Great Recession ◽  
Economic Activity ◽  
New Keynesian ◽  
Factor Productivity ◽  
Working Capital ◽  
The Great Recession ◽  
Keynesian Model ◽  
Price Rigidities ◽  
The Cost ◽  
Joint Behavior

We argue that the vast bulk of movements in aggregate real economic activity during the Great Recession were due to financial frictions. We reach this conclusion by looking through the lens of an estimated New Keynesian model in which firms face moderate degrees of price rigidities, no nominal rigidities in wages, and a binding zero lower bound constraint on the nominal interest rate. Our model does a good job of accounting for the joint behavior of labor and goods markets, as well as inflation, during the Great Recession. According to the model the observed fall in total factor productivity and the rise in the cost of working capital played critical roles in accounting for the small drop in inflation that occurred during the Great Recession. (JEL E12, E23, E24, E31, E32, E52)

Short Films from a Small Nation

2018 ◽  
Author(s):  
C. Claire Thomson
Keyword(s):  
Public Information ◽  
Industrial Process ◽  
Actor Network Theory ◽  
Documentary Films ◽  
Wide Range ◽  
Short Films ◽  
Post War ◽  
The 1960S ◽  
Art And Architecture

The first book-length study in English of a national corpus of state-sponsored informational film, this book traces how Danish shorts on topics including social welfare, industry, art and architecture were commissioned, funded, produced and reviewed from the inter-war period to the 1960s. For three decades, state-sponsored short filmmaking educated Danish citizens, promoted Denmark to the world, and shaped the careers of renowned directors like Carl Th. Dreyer. Examining the life cycle of a representative selection of films, and discussing their preservation and mediation in the digital age, this book presents a detailed case study of how informational cinema is shaped by, and indeed shapes, its cultural, political and technological contexts.The book combines close textual analysis of a broad range of films with detailed accounts of their commissioning, production, distribution and reception in Denmark and abroad, drawing on Actor-Network Theory to emphasise the role of a wide range of entities in these processes. It considers a broad range of genres and sub-genres, including industrial process films, public information films, art films, the city symphony, the essay film, and many more. It also maps international networks of informational and documentary films in the post-war period, and explores the role of informational film in Danish cultural and political history.

State-run celebration of Liberation Day in Czechoslovakia (based on audiovisual sources)

2019 ◽  
pp. 251-268
Author(s):  
Timur Gimadeev
Keyword(s):  
Political Development ◽  
Communist Regime ◽  
Political Regime ◽  
The Political ◽  
Historical Experience ◽  
History Of ◽  
Post War ◽  
The 1960S ◽  
The Military

The article deals with the history of celebrating the Liberation Day in Czechoslovakia organised by the state. Various aspects of the history of the holiday have been considered with the extensive use of audiovisual documents (materials from Czechoslovak newsreels and TV archives), which allowed for a detailed analysis of the propaganda representation of the holiday. As a result, it has been possible to identify the main stages of the historical evolution of the celebrations of Liberation Day, to discover the close interdependence between these stages and the country’s political development. The establishment of the holiday itself — its concept and the military parade as the main ritual — took place in the first post-war years, simultaneously with the consolidation of the Communist regime in Czechoslovakia. Later, until the end of the 1960s, the celebrations gradually evolved along the political regime, acquiring new ritual forms (ceremonial meetings, and “guards of memory”). In 1968, at the same time as there was an attempt to rethink the entire socialist regime and the historical experience connected with it, an attempt was made to reconstruct Liberation Day. However, political “normalisation” led to the normalisation of the celebration itself, which played an important role in legitimising the Soviet presence in the country. At this stage, the role of ceremonial meetings and “guards of memory” increased, while inventions released in time for 9 May appeared and “May TV” was specially produced. The fall of the Communist regime in 1989 led to the fall of the concept of Liberation Day on 9 May, resulting in changes of the title, date and paradigm of the holiday, which became Victory Day and has been since celebrated on 8 May.

Real Estate

2017 ◽  
Author(s):  
Stefan Homburg
Keyword(s):  
Real Estate ◽  
Great Recession ◽  
House Prices ◽  
Borrowing Constraints ◽  
Macroeconomic Models ◽  
Land Prices ◽  
The Great Recession ◽  
Quantitative Importance

Chapter 6 examines real estate as a neglected feature of actual economies. It begins with an empirical overview demonstrating the preeminent role of land as a part of nonfinancial wealth. Whereas many macroeconomic models represent nonfinancial wealth by a symbol K that is interpreted as machines and equipment (if not robots), the text makes clear that such items are of minor quantitative importance. In contemporary economies, nonfinancial wealth consists chiefly of real estate. This is the proper reason so many analysts conjecture a link between house prices and the Great Recession. Changes in house prices (primarily changes in land prices) operate on the economy through their influence on nonfinancial wealth. Nonfinancial wealth affects consumption directly and investment indirectly since it relaxes or tightens borrowing constraints. Building on the results obtained in previous chapters, the text studies housing manias and leverage cycles and relates its main findings to US data.

scholarly journals On the Limits of Macroprudential Policy

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Marcin Kolasa
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
New Keynesian ◽  
Output Volatility ◽  
Macroprudential Policy ◽  
Collateral Constraints ◽  
Keynesian Model ◽  
Additional Stabilization ◽  
The Interest Rate

AbstractThis paper studies how macroprudential policy tools applied to the housing market can complement the interest rate-based monetary policy in achieving one additional stabilization objective, defined as keeping either economic activity or credit at some exogenous (and possibly time-varying) levels. We show analytically in a canonical New Keynesian model with housing and collateral constraints that using the loan-to-value (LTV) ratio, tax on credit or tax on property as additional policy instruments does not resolve the inflation-output volatility tradeoff. Perfect targeting of inflation and credit with monetary and macroprudential policy is possible only if the role of housing debt in the economy is sufficiently small. The identified limits to the considered policies are related to their predominantly intertemporal impact on decisions made by financially constrained agents, making them poor complements to monetary policy, which also operates at an intertemporal margin. These limits can be overcome if macroprudential policy is instead designed such that it sufficiently redistributes income between savers and borrowers.

Collateral Constraints, Wage Rigidity, and Jobless Recoveries

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Tobias Föll
Keyword(s):  
Wage Rigidity ◽  
Jobless Recoveries ◽  
Collateral Constraints ◽  
Collateral Constraint ◽  
The Great Recession ◽  
Matching Frictions ◽  
Search And Matching Frictions ◽  
Business Cycle Model ◽  
The Cost

Abstract The Great Recession has drawn attention to the importance of macro-financial linkages. In this paper I explore the joint role of imperfections in labor and financial markets for the cyclical adjustment of the labor market. I show that jobless recoveries emerge when, upon exiting a recession, firms are faced with deteriorating credit conditions. On the financial side, collateral requirements affect the cost of borrowing for firms. On the employment side, hiring frictions and wage rigidity increase the need for credit, making the binding collateral constraint more relevant. In a general equilibrium business cycle model with search and matching frictions, I illustrate that tightening credit conditions calibrated from data negatively affect employment adjustments during recovery periods. Wage rigidity substantially amplifies this mechanism, generating empirically plausible fluctuations in employment and output.

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