The Chemistry of the Macroeconomy

Asset booms and busts have accompanied or caused recent macroeconomic fluctuations. However, asset prices are not a part of GDP nor are they included in inflation calculations. Links between the financial sector and real economy are increasingly important. This paper borrows an approach from the nat...

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Detalles Bibliográficos
Autor principal: Gmeiner, Robert
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer International Publishing 2022
Materias:
Research Paper
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9433532/
http://dx.doi.org/10.1007/s41549-022-00076-8
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author Gmeiner, Robert
author_facet Gmeiner, Robert
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description Asset booms and busts have accompanied or caused recent macroeconomic fluctuations. However, asset prices are not a part of GDP nor are they included in inflation calculations. Links between the financial sector and real economy are increasingly important. This paper borrows an approach from the natural sciences to explain the optimal amount of transactions for unbacked assets. Excessive transactions for such assets impede long run growth. This theory does not involve asset prices, only transactions, offering a distinction from literature on asset bubbles, and leads to concise policy recommendations to improve macroeconomic stability.
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spelling pubmed-94335322022-09-01 The Chemistry of the Macroeconomy Gmeiner, Robert J Bus Cycle Res Research Paper Asset booms and busts have accompanied or caused recent macroeconomic fluctuations. However, asset prices are not a part of GDP nor are they included in inflation calculations. Links between the financial sector and real economy are increasingly important. This paper borrows an approach from the natural sciences to explain the optimal amount of transactions for unbacked assets. Excessive transactions for such assets impede long run growth. This theory does not involve asset prices, only transactions, offering a distinction from literature on asset bubbles, and leads to concise policy recommendations to improve macroeconomic stability. Springer International Publishing 2022-09-01 2022 /pmc/articles/PMC9433532/ http://dx.doi.org/10.1007/s41549-022-00076-8 Text en © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Research Paper
Gmeiner, Robert
The Chemistry of the Macroeconomy
title The Chemistry of the Macroeconomy
title_full The Chemistry of the Macroeconomy
title_fullStr The Chemistry of the Macroeconomy
title_full_unstemmed The Chemistry of the Macroeconomy
title_short The Chemistry of the Macroeconomy
title_sort chemistry of the macroeconomy
topic Research Paper
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9433532/
http://dx.doi.org/10.1007/s41549-022-00076-8
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