TY  - JOUR
T1  - An Assessment on the Monetary Business Cycle Theory
TT  - Para Tabanlı İş Döngüsü Teorisi Üzerine Bir Değerlendirme
AU  - Coskun Yılmaz, Sevgi
PY  - 2024
DA  - February
Y2  - 2023
DO  - 10.47103/bilturk.1352232
JF  - BİLTÜRK Journal of Economics and Related Studies
JO  - BILTURK
PB  - Fatih DEYNELİ
WT  - DergiPark
SN  - 2667-5927
SP  - 1
EP  - 14
VL  - 6
IS  - 1
LA  - en
AB  - In recent years, considerable attention has given to analyzing the business cycle in terms of money. Many researchers have developed dynamic stochastic general equilibrium models that generate business cycle facts and guide for making monetary policy decisions. The aim of this study is to investigate how the persistence of total factor productivity (TFP) and money growth shocks drive the business cycles within an economy. To achieve this aim, we employ a monetary business cycle model with a cash-in-advance constraint, as in Cooley and Hansen (1995). Our results indicate that the volatility of macroeconomic variables is higher when the persistence of TFP shocks is greater compared to that of money growth shocks. Furthermore, TFP shocks seem to have a more significant role in driving variability within the models compared to money growth shocks. This is demonstrated by the higher percentage of variance decomposition attributed to TFP shocks, except in the case of consumption variability.
KW  - TFP shocks
KW  - money growth shocks
KW  - monetary business cycle model
KW  - business cycle
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UR  - https://doi.org/10.47103/bilturk.1352232
L1  - https://dergipark.org.tr/tr/download/article-file/3372203
ER  -