Financial Innovations and Macroeconomic Volatility / Urban Jermann, Vincenzo Quadrini.

Format:

Book

Author/Creator:

Jermann, Urban.

Contributor:

National Bureau of Economic Research.

Quadrini, Vincenzo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12308.

NBER working paper series no. w12308

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2006.

Summary:

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 play a key role in 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.

Notes:

Print version record

June 2006.