Real business cycles theory — total nonsense

Created
Tue, 24/03/2026 - 02:17
Updated
Tue, 24/03/2026 - 02:17
They try to explain business cycles solely as problems of information, such as asymmetries and imperfections in the information agents have. Those assumptions are just as arbitrary as the institutional rigidities and inertia they find objectionable in other theories of business fluctuations … I try to point out how incapable the new equilibrium business cycles […]

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