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The Financial Accelerator in a Quantitative Business Cycle Framework

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Author Info

  • Bernanke, B.
  • Gertler, M.
  • Gilchrist, S.

Abstract

This paper develops a dynamic general equilibrium model that is intended to help clarify the role of credit market frictions in business fluctuations, from both a qualitative and a quantitative standpoint. The model is a synthesis of the leading approaches in the literature. In particular, the framework exhibits a "financial accelerator", in that endogenous developments in credit markets work to amplify and propagate shocks to the macroeconomy.

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File URL: http://econ.as.nyu.edu/docs/IO/9381/RR98-03.PDF
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Bibliographic Info

Paper provided by C.V. Starr Center for Applied Economics, New York University in its series Working Papers with number 98-03.

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Length: 66 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:cvs:starer:98-03

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Postal: C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012
Phone: (212) 998-8936
Fax: (212) 995-3932
Web page: http://econ.as.nyu.edu/object/econ.cvstarr.html
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Postal: C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012
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For corrections or technical questions regarding this item, or to correct its listing, contact: (Anne Stubing).

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Keywords: BUSINESS CYCLES ; MONETARY POLICY;

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References

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