I don't understand the RBC theory in terms of procyclicality of prices and procyclicality of money supply.© BrainMass Inc. brainmass.com October 24, 2018, 10:30 pm ad1c9bdddf
According to real business cycle theory (RBCT), the business cycle is caused by random fluctuations in productivity. Unlike other leading theories of the business cycle, it sees recessions and booms as maximally optimal responses to these changes. That is, RBC theorists argue that at any point in time, the level of national ...
Fair Value Accounting and the Global Financial Crisis 2007
The recent financial crisis has turned the spotlight on fair-value accounting (FVA) and led to a major policy debate involving among others the US Congress, the European Commission as well as banking and accounting regulators around the world. Critics argue that FVA, often also called mark-to-market accounting (MTM), has significantly contributed to the financial crisis and exacerbated its severity for financial institutions in the US and around the worldView Full Posting Details