Beautiful Cycles : A Theory and a Model Implying a Curious Role for Interest /

Where do economic cycles come from? This paper contemplates an utmost minimalistic model and underlying theory that rest on two assumptions for letting them emerge endogenously: (1) the presence of interest-bearing debt; and (2) a degree of downward nominal wage rigidity. Despite its parsimony, the...

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Bibliographic Details
Main Author: Gross, Marco
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2021.
Series:IMF Working Papers; Working Paper ; No. 2021/067
Online Access:Full text available on IMF