Real Business Cycles and the Lucas Paradigm.
When the Lucas paradigm is generalized to include real effects, the effects of real factors and monetary factors on the business cycle are always interrelated. Furthermore, in such m odels, monetary factors can affect the long-run behavior of real outp ut, contrary to the commonly held view that they cannot. Real busines s cycle models and Lucas-type models are different paradigms, but not in the sense of real versus monetary. Rather, interrelationships bet ween real and monetary factors are intrinsic to the Lucas paradigm, w hereas the real business cycle literature implies a dichotomy between real and monetary factors. Copyright 1988 by Oxford University Press.
Year of publication: |
1988
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Authors: | Froyen, Richard T ; Waud, Roger N |
Published in: |
Economic Inquiry. - Western Economic Association International - WEAI. - Vol. 26.1988, 2, p. 183-201
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Publisher: |
Western Economic Association International - WEAI |
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