Business Cycle Theory

'. . . this book is long overdue and its selection of by now classic business cycle papers is an excellent articulation of the Lucas/real business cycle agenda that merits a home on every inquiring macroeconomist's bookshelf.' - C. Ryan, the Economic Journal This volume is a collection of key articles on modern business cycle theory. Fundamental to business cycle theory is the estimation of the role played by different impulses or shocks for aggregate fluctuations, and identifying the mechanisms by which these impulses propagate over time to create the cycles we observe. Business Cycles Theory is divided into three parts. Part I deals with issues of measurement and methodology and describes empirical business cycle regularities. Parts II and III centre around the study of real and nominal shocks and impulses.