Theoretical and Applied Economics
No. 3 / 2021 (628), Autumn
Evaluation of the methodological relationship between real business cycle model and macroprudential policy
Independent Researcher, Turkey
Abstract. While real business cycle model excluded nominal demand and monetary changes in proof of aggregate output fluctuations, the 2008 crisis proved otherwise. The systemic risk that emerged in this process affected the financial and real sector transmission mechanism towards a contraction. Macroprudential policy brought a solution to the problem, especially with banking loan activities. The aim of this study is to explain the methodological relationship between real business cycle model and macroprudential policy intervention based on the results of the 2008 crisis. In the study, the lack of information set limits the methodological relationship, including the duration of real economic shocks, the degree of interaction between the financial and real sector, and the magnitude of the credit cycle volatility.
Contents
Two vital reference elements in the evolution of the current model of European integration – The Maastricht Treaty and the implementation of the single currency – Euro
Development in Romania during the post-crisis period: A human, economic and social perspective
Multifactorial analysis of the price formation in the terms of a risk-free rate
Financial contracts with several types of agents
Evaluation of the methodological relationship between real business cycle model and macroprudential policy
Efficiency of commercial banks in India after global financial crises
Effectiveness of monetary policy and interest rate pass-through in India since financial sector reforms
FDI and ODA effects on recipient countries imports: Evidence from selected MENA countries
Estimating the relationship between governance, economic growth, inequality and poverty
Environmental Kuznets curve and India: Evidence from autoregressive distributed lag model
Rural urban migration with heterogeneous firms, heterogonous laborer and the effect of wage subsidy
The relationship between exchange rates, foreign trade and economic growth: An application on Turkey