Monetary policy, financial crises, and the business cycle: implications of the change in Federal Reserve policy during the 1982–90 business-cycle expansion

1995 ◽  
Vol 7 (3) ◽  
pp. 344-359 ◽  
Author(s):  
Martin H. Wolfson
Keyword(s):  
Monetary Policy ◽  
Business Cycle ◽  
Federal Reserve ◽  
Financial Crises ◽  
The Business Cycle ◽  
Federal Reserve Policy

scholarly journals Business cycle synchronization and monetary policy in Bosnia and Herzegovina

Bankarstvo ◽  
2021 ◽  
Vol 50 (2) ◽  
pp. 8-20
Author(s):  
Dragan Jović
Keyword(s):  
Monetary Policy ◽  
Business Cycle ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Great Part ◽  
Currency Board ◽  
The Business Cycle ◽  
Further Development ◽  
Discretionary Monetary Policy ◽  
New Instruments

By adopting the currency board at the end of the last century, and by pegging its exchange rate to the Euro, a quarter of a century ago, Bosnia and Herzegovina surrendered a great part of its monetary policy in the hand of European Central Bank in the hope that the synchronization of the business cycle will make foreign monetary policy completely suitable for Bosnia and Herzegovina. At the same time during these two decades, the Central Bank of Bosnia and Herzegovina has been developing and using reserve requirement and remuneration as discretionary instruments of monetary policy. The research shows that the domestic business cycle and the foreign one are relatively weakly synchronized compared to other countries' degree of synchronization, and by this findings current discretionary monetary policy and its further development and enrichment with new instruments is fully justified. Bosnia and Herzegovina must continue with developing its own discretionary monetary policy without relying on foreign monetary policy.

Detecting Regime Shifts in Credit Spreads

2014 ◽  
Vol 49 (5-6) ◽  
pp. 1339-1364 ◽  
Author(s):  
Olfa Maalaoui Chun ◽  
Georges Dionne ◽  
Pascal François
Keyword(s):  
Federal Reserve ◽  
Financial Crises ◽  
Regime Shift ◽  
Predictive Power ◽  
Credit Spreads ◽  
Credit Supply ◽  
Level Regime ◽  
Regime Types ◽  
Shift Detection ◽  
The Business Cycle

AbstractUsing an innovative random regime shift detection methodology, we identify and confirm two distinct regime types in the dynamics of credit spreads: a level regime and a volatility regime. The level regime is long lived and shown to be linked to Federal Reserve policy and credit market conditions, whereas the volatility regime is short lived and, apart from recessionary periods, detected during major financial crises. Our methodology provides an independent way of supporting structural equilibrium models and points toward monetary and credit supply effects to account for the persistence of credit spreads and their predictive power over the business cycle.

scholarly journals Liquidity Effects, Monetary Policy, and The Business Cycle

1992 ◽  
Author(s):  
Lawrence J. Christiano ◽  
Martin S. Eichenbaum
Keyword(s):  
Monetary Policy ◽  
Business Cycle ◽  
The Business Cycle

scholarly journals Taxes and the Structure of Production

1998 ◽  
Vol 16 (2) ◽  
pp. 145-159 ◽  
Author(s):  
Walter Block
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rate ◽  
Business Cycle ◽  
Time Preference ◽  
Causal Relation ◽  
Austrian Business Cycle ◽  
The Business Cycle ◽  
The Interest Rate ◽  
Structure Of Production

Abstract In Austrian theory, the business cycle is caused by expansive monetary policy, which artificially lowers the interest rate below equilibrium rates, necessarily lengthening the structure of production. Can tax alterations also cause an Austrian business cycle? Only if they affect time preference rates, the determinant of the shape of the Hayekian triangle. It is the contention of this paper that changes in taxes possibly can (but need not) impact time preference rates. Thus there may be a causal relation between fiscal policy and the business cycle, but this is not a necessary connection, as there is between monetary policy and the business cycle. This is contentious, since some Austrians argue that there is a praxeological link between tax policy and time preference rates.

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