In the business cycle literature of the inter-war years, the role of the interest rate in coordinating, or failing to co-ordinate, agents' choices about the allocation of resources over time was an important theme, to which Axel Leijonhufvud (1981) gave the name "the Wicksell connection". The...

It was remarked at the outset of this paper that, in the 1920s,there existed a vigorous, diverse, and distinctly American literature dealing with monetary economics and the business cycle.

Because labor quality changes over the business cycle,the cyclicality of aggregate wages cannot reflect the true cyclical behavior of the price of labor inputs. To control for changes in labor quality, many researchers have examined the cyclical behavior of the price of labor inputs using...