Open AccessResearch on the Quantitative Dynamic Structure of Shocks in Macroeconomics Business Cycle
Author(s) -
Liangxin Li
Publication year - 2010
Publication title -
international journal of business and management
Language(s) - English
Resource type - Journals
eISSN - 1833-8119
pISSN - 1833-3850
DOI - 10.5539/ijbm.v5n6p123
Subject(s) - business cycle , economics , shock (circulatory) , macroeconomics , unemployment , vector autoregression , supply shock , capital flows , exchange rate , monetary economics , keynesian economics , monetary policy , medicine , profit (economics) , microeconomics
In this paper, we attempt to study quantitatively the effects on macroeconomics due to different shocks. The interactions between different shocks are the major subjects. Furthermore, the dynamics of shocks, i.e, the time evolutions of shocks, and the propagation of shocks are studied in detail by using the quantitative models. The approach of this paper can be applied to any economic shocks, particularly, price shocks, technology shocks, unemployment shocks, and outer capital flow shocks. As an example, we investigate the interaction of price shock and exchange rate shock. At the same time, we also discuss the macroeconomic policy’s effects on economic business cycle