Understanding Real Business Cycles
- (pp. 51-77)
AbstractThis brief essay is intended to provide readers with an introduction to the real business cycle approach to business fluctuations. It discusses the basic real business cycle framework; economic growth and business cycles; real business cycles and the 1954-1985 U.S. economy; government policies and suboptimal equilibrium; and the real business cycle research agenda. An appendix presents a more technical summary of the basic neoclassical model presented in the paper.
Citation1989. "Understanding Real Business Cycles." Journal of Economic Perspectives, 3(3): 51-77. DOI: 10.1257/jep.3.3.51
- 131 Economic Fluctuations--Theory
- 131 Economic Fluctuations--Studies