Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251948 
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Economic and Administrative Sciences [ISSN:] 1026-4116 [Volume:] forthcoming [Issue:] forthcoming [Publisher:] Emerald Publishing Limited [Place:] Bingley [Year:] 2022
Publisher: 
Emerald Publishing Limited, Bingley
Abstract: 
Purpose: We augment an otherwise standard business cycle model with a richer government sector, and add money-in-utility (MIU) considerations to study economic fluctuations. Design/methodology/approach: More specifically, real money balances enter in a non-separable way with consumption and leisure. This specification is then calibrated to Bulgarian data after the introduction of the currency board (1999-2020), gives a role to money in accentuating economic fluctuations. Findings: This novel mechanism allows the framework to reproduce - better than the RBC model - the observed variability and correlations among model variables, and those characterizing the labor market in particular. In addition, money is non-neutral and affects aggregate economic activity. Originality: This is the first micro-founded monetary-DSGE model on Bulgaria trying to explain the role of money for economic fluctuations.
Subjects: 
business cycles
money-in-utility (MIU) considerations
JEL: 
E32
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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