Morley, James (2016) Macro-Finance Linkages. Journal of Economic Surveys, 30 (4). pp. 698-711. ISSN 0950-0804
Full text not available from this repository.Abstract
In this survey, I review the academic and policy-oriented literature on the linkages between financial markets and the rest of the economy. First, I summarize the leading economic theories for why the financial sector can influence the macroeconomy. Second, I consider empirical research on spillovers from the financial sector to the rest of the economy, as well as across financial markets in different countries. Third, I discuss key monetary policy debates regarding the appropriate response of central banks to financial conditions. Finally, I conclude with an overview of the major gaps in the existing literature.