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Great Spending Crashes

Author

Listed:
  • Beckworth David

    (Western Kentucky University)

  • Hendrickson Josh

    (University of Mississippi)

Abstract

Over the last century, there have been four major peacetime crashes in aggregate nominal spending in the United States. We argue in this paper that these great spending crashes can be best understood from a monetary disequilibrium perspective. We examine this hypothesis using a structural vector autoregression that identifies the key monetary shocks implied by the monetary disequilibrium view. We find that these monetary shocks are the main contributors to each of the great spending crashes.

Suggested Citation

  • Beckworth David & Hendrickson Josh, 2012. "Great Spending Crashes," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-28, September.
    • Handle: RePEc:bpj:bejmac:v:12:y:2012:i:1:n:28
    DOI: 10.1515/1935-1690.2380
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    References listed on IDEAS

    as
    1. Rapach, David E., 2001. "Macro shocks and real stock prices," Journal of Economics and Business, Elsevier, vol. 53(1), pages 5-26.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Some Thoughts on Liquidity
      by Josh in The Everyday Economist on 2013-05-24 00:31:52

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    Cited by:

    1. Cameron Harwick, 2019. "Bubbles and Broad Monetary Aggregates: Toward a Consensus Approach to Business Cycles," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(2), pages 250-268, April.

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