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

Benk, Szilard, Gillman, Max and Kejak, Michal 2008. US volatility cycles of output and inflation, 1919-2004: a money and banking approach to a puzzle. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

Preview

PDF - Published Version Download (781kB) | Preview

Abstract

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.

Item Type:	Monograph (Working Paper)
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Cardiff University
Date of First Compliant Deposit:	30 March 2016
Last Modified:	06 Oct 2015 13:16
URI:	https://orca.cardiff.ac.uk/id/eprint/77809

Actions (repository staff only)

Edit Item