Theoretical and Applied Economics
No. 3 / 2021 (628), Autumn
Evaluation of the methodological relationship between real business cycle model and macroprudential policy
Independent Researcher, Turkey
Abstract. While real business cycle model excluded nominal demand and monetary changes in proof of aggregate output fluctuations, the 2008 crisis proved otherwise. The systemic risk that emerged in this process affected the financial and real sector transmission mechanism towards a contraction. Macroprudential policy brought a solution to the problem, especially with banking loan activities. The aim of this study is to explain the methodological relationship between real business cycle model and macroprudential policy intervention based on the results of the 2008 crisis. In the study, the lack of information set limits the methodological relationship, including the duration of real economic shocks, the degree of interaction between the financial and real sector, and the magnitude of the credit cycle volatility.
Keywords: real business cycle model, macroprudential policy, 2008 crisis, systemic risk, financial and real sector.
Contents
- Two vital reference elements in the evolution of the current
model of European integration – The Maastricht Treaty
and the implementation of the single currency – Euro
Alin Ioan CREŢU
Alina Ștefania CHENIC
- Development in Romania during the post-crisis period:
A human, economic and social perspective
Maria-Daniela TUDORACHE
- Multifactorial analysis of the price formation in the terms
of a risk-free rate
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Iulian RADU
- Financial contracts with several types of agents
Laura CONSTANTIN
Ștefan Virgil IACOB
Dana Luiza GRIGORESCU
- Evaluation of the methodological relationship
between real business cycle model and macroprudential policy
Ayşegül Ladin SÜMER
- Efficiency of commercial banks in India
after global financial crises
K. RAVIRAJAN
K.R. SHANMUGAM
- Effectiveness of monetary policy and interest rate
pass-through in India since financial sector reforms
N. KUBENDRAN
- FDI and ODA effects on recipient countries imports:
Evidence from selected MENA countries
Mahmoud M. SABRA
- Estimating the relationship between governance,
economic growth, inequality and poverty
Mohammed TOUITOU
Ahmed BOUDEGHDEGH
- Environmental Kuznets curve and India:
Evidence from autoregressive distributed lag model
Jaganath BEHERA
- Rural urban migration with heterogeneous firms,
heterogonous laborer and the effect of wage subsidy
Sravaitri CHAUDHURI
Ranajoy BHATTACHARYYA
Sukanta BHATTACHARYA
- The relationship between exchange rates,
foreign trade and economic growth:
An application on Turkey
Çiğdem ALIM
Necati Alp ERILLI