Financial innovations and macroeconomic volatility

Urban Jermann and Vincenzo Quadrini

Proceedings, 2006, issue Nov

Abstract: The volatility of US business cycles has declined during the last two decades. During the same period the financial structure of firms has become more volatile. In this paper we develop a model in which financial factors are central for generating economic fluctuations. Innovations in financial markets allow for greater financial flexibility and generate a lower volatility of output together with a higher volatility in the financial structure of firms.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (68)

Downloads: (external link)
https://www.frbsf.org/wp-content/uploads/6_Quadrini.pdf Full Text (text/html)

Related works:
Working Paper: Financial Innovations and Macroeconomic Volatility (2007)
Working Paper: Financial Innovations and Macroeconomic Volatility (2006)
Working Paper: Financial Innovations and Macroeconomic Volatility (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfpr:y:2006:i:nov:x:19

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Proceedings from Federal Reserve Bank of San Francisco Contact information at EDIRC.
Bibliographic data for series maintained by Federal Reserve Bank of San Francisco Research Library ().