From Cycles to Shocks: Progress in Business-Cycle Theory.(Statistical Data Included)
From: Business Review (Federal Reserve Bank ofPhiladelphia)
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Date: 3/1/2000
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Author: Chatterjee, Satyajit
&type=MAGS "Business Review (Federal Reserve Bank ofPhiladelphia)")
Early analysts of business cycles believed that each cyclical phase of the economy carries within it the seed that generates the next cyclical phase. A boom generates the next recession; that recession generates the next boom; and the economy is caught forever in a self-sustaining cycle. In contrast, modern theories of business cycles attribute cyclical fluctuations to the cumulative effects of shocks and disturbances that continually buffet the economy. In other words, without ...
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