Financial development shocks and contemporaneous feedback effect on key macroeconomic indicators: A post Keynesian time series analysis

Taha Chaiechi

Economic Modelling, 2012, vol. 29, issue 2, 487-501

Abstract: In this paper we take into account the role of the banking system, credit and stock market in stimulating aggregate demand in post Keynesian tradition. According to the results of impulse response analysis; it appears all three financial development indicators contributed as expected in improving macroeconomic performance of South Korean economy. Stock market capitalisation and domestic credit availability are strongly responsible for stimulation of investment, saving and productivity Growth in Hong Kong. The UK financial system seems vulnerable to future shocks, whether by shocks in the credit markets or stock markets.

Keywords: Kaleckian–Post Keynesian; Financial development; Modern growth; Structural autoregressive models; Impulse response analysis (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:2:p:487-501

DOI: 10.1016/j.econmod.2011.12.008

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