A Note on the Real Business Cycle Theory

Francisco Rosende

Authors

Francisco Rosende Gerencia de Estudios Banco Central de Chile

Keywords:

real business cycles, macroeconomics, Kydland, Prescott, economic fluctuations, equilibrium theory

Abstract

The main purpose of this note is to present in a simple way the most important aspects of the theory of real business cycles, following F. Kydland and E. Prescott path-breaking paper of 1982. The presentation is complemented by a discussion about the main criticisms made on this theory.

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A Note on the Real Business Cycle Theory

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