Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47325
Authors: 
Anundsen, André K.
Krogh, Tord S. H.
Nymoen, Ragnar
Vislie, Jon
Year of Publication: 
2011
Series/Report no.: 
Memorandum // Department of Economics, University of Oslo 2011,03
Abstract: 
This paper presents the business cycle model that Trygve Haavelmo developed as part of his research program in macroeconomic and monetary theory. Driven by a mismatch between the marginal return to capital and the rate of return required by capital owners, this model generates endogenous cycles. The theory leads to a distinct analysis of the scope and limitations of monetary policy. A main message of the model is that care should be taken when conducting 'autonomous' monetary policy and that special emphasis should be put on the soundness of nancial markets. Adopting a strict nominal anchor as the main objective of monetary policy might generate imbalances in the capital market.
Subjects: 
investments
business cycles
monetary policy
JEL: 
E22
E32
E44
E52
Document Type: 
Working Paper

Files in This Item:
File
Size
477.27 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.