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The "Plucking Model" of Business Fluctuations Revisited

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  • Friedman, Milton

Abstract

Some twenty-five years ago, the author suggested a model of business fluctuations that stresses occasional events producing contractions and subsequent revivals rather than a self-generating cyclical process. Evidence for the past quarter century, like evidence presented in the author's earlier paper for a longer period, supports the view that the model is a useful way to interpre t business fluctuations and has sufficiently important implications to justify further empirical work for both the United States and other countries. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Friedman, Milton, 1993. "The "Plucking Model" of Business Fluctuations Revisited," Economic Inquiry, Western Economic Association International, vol. 31(2), pages 171-177, April.
    • Handle: RePEc:oup:ecinqu:v:31:y:1993:i:2:p:171-77
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