Abstract: Conflicting views on the causes and nature of business-cycle fluctuations usually can be attributed to different beliefs about the adjustments of prices and wages. For example, Kydland and Prescott (1990) - KP hereafter - concluded that U.S. prices had been countercyclical since 1954 and interpreted that as evidence against demand-driven models of the cycle. Those findings were based on the innovative “stylized-facts” method of KP, as further developed (Kydland and Prescott, 1991) and contrasted with the econometric “system-of-equations” approach of Koopmans (1947,1949).
Publication Year: 2012
Publication Date: 2012-08-21
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 6
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