Financial Innovations and Macroeconomic Volatility

Financial Innovations and Macroeconomic Volatility
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Total Pages : 0
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ISBN-10 : OCLC:1293414416
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Book Synopsis Financial Innovations and Macroeconomic Volatility by : Urban J. Jermann

Download or read book Financial Innovations and Macroeconomic Volatility written by Urban J. Jermann and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The volatility of US business cycle 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 volatile in the financial structure of firms.


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