“…Which behavioral reactions will strengthen, which will weaken reform policies? …”

“…In this paper we study the behavior of money, credit, and macroeconomic indicators over the long run based on a newly constructed historical dataset for 12 developed countries over the years 1870- 2008, utilizing the data to study rare events associated with financial crisis episodes. …”

“…We calibrate the model, to ask how monetary factors account quantitatively for low-frequency labor market behavior. The answer depends on two key parameters: the elasticity of money demand, which translates monetary policy to real balances and profits; and the value of leisure, which affects the transmission from profits to entry and employment. …”