Macroeconomic dynamics and the IS puzzle-Reference-Cited by-同舟云学术

Macroeconomic dynamics and the IS puzzle

Published:2018-09-18 Issue:1 Volume:12 Page:
ISSN:1864-6042
Container-title:Economics
language:en
Short-container-title:

Author:

Hawkins Raymond J.¹,Nguyen Chau N.²

Affiliation:

1. Department of Economics , University of California , Berkeley , USA and College of Optical Sciences , University of Arizona , Tucson , USA

2. Department of Economics , University of California , Berkeley , CA, USA

Abstract

Abstract The authors solve the IS puzzle for the G7 countries. They find that five of the G7 countries have the expected significant negative relationship between the output gap and the realrate gap; the time series of the remaining two show material deviation from expected IScurve behavior. The authors show that the observed time dependence of the interaction between the output and real-rate gaps can be represented in a parsimonious and practical manner using the theory of anelasticity that unifies partial-adjustment specifications of the IS curve.

Publisher

Walter de Gruyter GmbH

Subject

General Economics, Econometrics and Finance

Link

https://www.degruyter.com/document/doi/10.5018/economics-ejournal.ja.2018-59/pdf

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