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Impulse or propagation? How the tides turned in Business Cycle Theory

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  • J.P.G. Reijnders
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    This paper contains a short history of business cycle theory. It is argued that in the course of time the emphasis shifted from a mainly exogenous to a mainly endogenous explanation of the cycle. After the integration of the two approaches in the so-called impulse and propagation theory, the balance kept shifting between an emphasis on endogenous propagation mechanism (Keynesians), the exogenous impulse mechanism (New Classicals) and back again to the propagation mechanism (New Keynesians). The shifts in emphasis in theory are accompanied by changes in the perceived window of opportunity for economic policy.

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    File URL: https://dspace.library.uu.nl/bitstream/handle/1874/31462/07-07.pdf
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    Paper provided by Utrecht School of Economics in its series Working Papers with number 07-07.

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    Date of creation: Jan 2007
    Handle: RePEc:use:tkiwps:0707
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    17. Blackburn, Keith, 1987. " Macroeconomic Policy Evaluation and Optimal Control Theory: A Critical Review of Some Recent Developments," Journal of Economic Surveys, Wiley Blackwell, vol. 1(2), pages 113-148.
    18. Arestis, Philip & Sawyer, Malcolm, 1998. "Keynesian Economic Policies for the New Millennium," Economic Journal, Royal Economic Society, vol. 108(446), pages 181-195, January.
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