Measuring Business Cycles: The Real Business Cycle Approach and Related Controversies
This paper presents and discusses the business cycles measurement carried out by the real business cycle (RBC) approach. It shows how the controversy lodges within and outside the RBC frontiers. It also shows how the methodological debate that took place in the 1940s about the relationship between theory and measurement, is revived in modern discussions of business cycles measurement. The paper concludes that this relationship still raises fierce contention.
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