01537cas a2200241 a 4500 AALejournalIMF014779 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498347792 1018-5941 BD-DhAAL BD-DhAAL Taheri Sanjani, Marzie. Financial Frictions and Sources of Business Cycle / Marzie Taheri Sanjani. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper estimates a New Keynesian DSGE model with an explicit financial intermediary sector. Having measures of financial stress, such as the spread between lending and borrowing, enables the model to capture the impact of the financial crisis in a more direct and efficient way. The model fits US post-war macroeconomic data well, and shows that financial shocks play a greater role in explaining the volatility of macroeconomic variables than marginal efficiency of investment (MEI) shocks. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/194 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/194/001.2014.issue-194-en.xml IMF e-Library