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Macroeconomic Ideas, Business Cycles and Economic Policies: One Size Doesn’t Fit All - A Primer

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  • Donato Masciandaro

Abstract

The lecture notes describe different views in macroeconomics – i.e. how to explain the business cycle and to design economic policy - using a modified workhorse AS AD model, in order to include in the simplest way uncertainty, expectations and the role of banking and finance. The bottom line is to show pedagogically that one size – i.e. a unique economic mainstream – doesn’t fit all – i.e. cannot explain different national and historical business cycles. Therefore it is necessary to know more than one macroeconomic views, and history, politics and empirics matters in disentangling the pros and cons of each of them.

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  • Donato Masciandaro, 2014. "Macroeconomic Ideas, Business Cycles and Economic Policies: One Size Doesn’t Fit All - A Primer," BAFFI CAREFIN Working Papers 14161, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:baf:cbafwp:cbafwp14161
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