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arXiv · 1707.00947

The Role of Money in the Business Cycle

Zhao Jianglin
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Abstract

The aim of this paper is to reemphasize the money theory of exchange which is centered on the function of exchange medium of money, and make a contribution towards linearization of the quantity equation of exchange. A dynamical quantity equation is presented and an important balanced path of economic evolution is derived. To understand the business cycle we propose a hypothesis of natural cycle and driving cycle concerning the evolution of the balanced path and plentiful conclusions can be made.

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Zhao Jianglin. 2017-06-30. The Role of Money in the Business Cycle. https://arxiv.org/abs/1707.00947

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