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- W2898838196 abstract "This chapter is devoted to two important schools of thought, viz. new classical economics and real business cycle theory which rose to prominence in the late 1970s. The new classical school shares with Friedman’s monetarism, three features—a profound belief in the self-corrective properties of markets and a corresponding distrust of Keynesian interventionist policies (widely prevalent in the late 1960s and 1970s), a denial of the existence of a long-run trade-off between inflation and unemployment along a Phillips curve, and a recognition of the important role played by agents’ expectations in macroeconomic outcomes. Real business cycle theory usually associated with the names of Prescott, Kydland, Plosser, Long, etc., builds on a line of earlier thinking, associated on the one hand with the impulse and propagation mechanisms of business cycles due to Frisch and Slutzky, and on the other with the neoclassical growth model of Solow." @default.
- W2898838196 created "2018-11-09" @default.
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- W2898838196 date "2018-01-01" @default.
- W2898838196 modified "2023-09-27" @default.
- W2898838196 title "New Classical Economics and Real Business Cycle Theory" @default.
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- W2898838196 doi "https://doi.org/10.1007/978-81-322-3920-8_3" @default.
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