A Comparison of Exchange Economies within a Monetary Business Cycle

Szilard Benk, Max Gillman and Michal Kejak ()

No E2005/14, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: The paper sets out a monetary business cycle model with three alternative exchange technologies, the cash-only, shopping time, and credit production models. The goods productivity and money shocks affect all three models, while the credit model has in addition a credit productivity shock. The paper compares the performance of the models in explaining the puzzles of the monetary business cycle theory. The credit model improves the ability to explain the procyclic movement of monetary aggregates, inflation and the nominal interest rate.

Keywords: Cash-in-advance; credit production; cycle; inflation (search for similar items in EconPapers)
JEL-codes: E13 E32 E44 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2005-12
New Economics Papers: this item is included in nep-dge, nep-fmk, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in The Manchester School

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Related works:
Journal Article: A COMPARISON OF EXCHANGE ECONOMIES WITHIN A MONETARY BUSINESS CYCLE (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:cdf:wpaper:2005/14

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