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Real Business Cycle Models Of The Great Depression: A Critical Survey

  • Luca Pensieroso

Recent years have witnessed a revival of interest in the Great Depression of the 1930s. Among the differing new interpretations, the real business cycle (RBC) approach is particularly significant. It represents an outstanding methodological innovation in trying to cast the Great Depression within an 'equilibrium' framework. This paper critically reviews the RBC interpretation of the Great Depression, clarifying its theoretical and methodological foundations, and paving the way for future assessments of its validity. Copyright 2007 The Author Journal compilation � 2007 Blackwell Publishing Ltd.

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Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 21 (2007)
Issue (Month): 1 (02)
Pages: 110-142

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Handle: RePEc:bla:jecsur:v:21:y:2007:i:1:p:110-142
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