Real Business Cycles: a New Keynesian Perspective

27 Pages Posted: 28 Jun 2004 Last revised: 18 Nov 2022

See all articles by N. Gregory Mankiw

N. Gregory Mankiw

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 1989

Abstract

This paper is a critique of the latest new classical theory of economic fluctuations. According to this theory, the business cycle is the natural and efficient response of the economy to exogenous changes in the available production technology. This paper discusses several versions of this theory and argues that this line of research is unlikely to yield an empirically plausible explanation of observed economic fluctuations.

Suggested Citation

Mankiw, N. Gregory, Real Business Cycles: a New Keynesian Perspective (March 1989). NBER Working Paper No. w2882, Available at SSRN: https://ssrn.com/abstract=227237

N. Gregory Mankiw (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Room 223
Cambridge, MA 02138
United States
617-495-4301 (Phone)
617-495-7730 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States