Eduardo Amaral de Paula Minga

The recent historic of financial crisis which world experienced last decades boosted the debate about macroeconomic models which explain the role of money in business cycles. Throughout this work it is made an effort to compatibilize a RBC framework with the malinvestment concept, which is widely discussed by Austrian School. The viability of the proposed goal was examined by the historical analysis of the origins and current state of these two streams of the economic thought. A formal model is proposed, wich is empirically tested through the vector error corretion (VEC) and vetor autoregressive (VAR) methodologies. The evidences for Brazilian and American data corroborate with the implications of proposed model. That is, monetary shocks that drives interest rate in credit market below its natural level may cause positive effects in short term, but at cost of negative effects in the long run. The theoretical and empirical results shows that there is a great complementarity potencial between Austrian and RBC theories wich open room for development of a wide range of macroeconomic models.