by Bob Burkhardt
Converted to HTML July 30, 1998.
This is a paper I did as a graduate student in economics at M.I.T as an initial step toward writing a Ph.D. thesis. It went over like a lead balloon. A version in PDF format is available. The equations in that version are more readable.
The first part of the paper owes much to ideas presented in "General Equilibrium and Business Cycles" by Fischer Black. The second part is a revised version of "Inventories, Financial Markets, and the Business Cycle" which was presented at the Money-Macro Workshop in February, 1978. It benefited from criticism received there and comments on a draft by Stan Fischer.
| Chapter 1: | Introduction |
| Chapter 2: | The Production Sector |
| Chapter 3: | The Financial Sector |
| Chapter 4: | Implications of the Model |
| Appendix: | Alternative Savings Model |
| References |
Figures
| Figure 2.1: | Response to an Increase in Expected Return on Investment |
| Figure 4.1: | Response to an Increase in High-Powered Money |