Dualism and Macroeconomic Volatility

# Dualism and Macroeconomic Volatility > OpenAlex Metadata Hub · https://openalex.org/W2129138051 ## Bibliographic - **DOI:** 10.1162/003355399556296 - **Year:** 1999 - **Citations:** 407 - **Open Access:** Yes (green) - **License:** — - **Source:** https://discovery.ucl.ac.uk/17683/1/17683.pdf ## Authors - Philippe Aghion - Abhijit Banerjee - Thomas Piketty ## Abstract This paper develops a simple macroeconomic model that shows that combin-ing capital market imperfections together with unequal access to investment opportunities across individuals can generate endogenous and permanent fluctua-tions in aggregate GDP, investment, and interest rates. Reducing inequality of access may be a necessary condition for macroeconomic stabilization. Moreover, countercyclical fiscal policies have a role to play: in our model savings are underutilized in slumps because of the limited debt capacity of potential investors. Therefore, the government should issue public debt during recessions in order to absorb those idle savings and finance investment subsidies or tax cuts for investors. The most important single fact about saving and investment activities is that in our industrial society they are generally done by different people and for different reasons. (...) For years there might tend to be too little investment, leading to deflation, losses, excess capacity and unemployment. For other years, there might tend to be too much investment, leading to periods of chronic inflation—unless prudent and proper public policies in the fiscal and monetary fields are followed [Paul A. Samuelson, Economics 8th edition, 1970, pp. 196–198]. ## Keywords Economics, Debt, Monetary economics, Investment (military), Unemployment, Recession, Subsidy, Volatility (finance), Capital market imperfections, Macroeconomic model, Interest rate, Macroeconomics, Capital market, Market economy, Finance ## Concepts - Economics - Debt - Monetary economics - Investment (military) - Unemployment - Recession - Subsidy - Volatility (finance) - Capital market imperfections - Macroeconomic model - Interest rate - Macroeconomics - Capital market - Market economy - Finance - Politics - Law - Political science --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “Dualism and Macroeconomic Volatility” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): This paper develops a simple macroeconomic model that shows that combin-ing capital market imperfections together with unequal access to investment opportunities across individuals can generate endogenous and permanent fluctua-tions in aggregate GDP, investment, and interest rates. Reducing inequality of access may be a necessary condition for macroeconomic stabilization. Moreover, countercyclical fiscal policies have a role to play: in our model savings are underutilized in slumps because of the limited debt capacity of potential investors. Therefore, the government should issue public debt during recessions in order to absorb those idle savings and finance investment subsidies or tax cuts for investors. The most important single fact about saving and investment activities is that in our industrial society they are generally done by different people and for different reasons. (...) For … Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.