ENGLISH

Business Cycle Dynamics and Stabilization Policies: A Keynesian Approach

By Hajime Hori (auth.)

Book information

Publisher
Springer Singapore
Year
2017
ISBN
978-981-10-3080-2, 978-981-10-3081-9
DOI
10.1007/978-981-10-3081-9
Language
english
Format
PDF
Filesize
2 MB (2386175 bytes)
Series
Advances in Japanese Business and Economics 15
Edition
1
Pages
XIII, 142\150
Time added
2017-06-25 01:07:36
Macroeconomics/Monetary Economics//Financial Econo

Description

This monograph is devoted to the analysis of the dynamics of business cycles and stabilization policies. The analysis is conducted in models of the AS-AD type, focusing on involuntary unemployment and capital accumulation. Major conclusions are the following. (1) Sectoral imbalances, once emphasized by such business-cycle theorists as K. Marx, A. Spiethoff, and F.A. Hayek, are rectified in finite time by competitive investment allocation, leaving aggregate variables as the main variables of business cycle dynamics. (2) The chronology of events during a cycle is established, which resolves the so-called real wage puzzle. (3) Owing to the crowding-out effect on investment, fiscal stabilization policies can destabilize the business cycle dynamics if implemented too intensively. (4) If coordinated properly, monetary stabilization policies can remove the destabilizing tendency of fiscal stabilization policies.

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