Friday, February 15, 2013

As I've Been Saying

Many business cycle models are not really cycle models at all. That does not mean they are wrong: it might be the people who say there is a business cycle who are wrong. But I think it is good to distinguish between theories with actual cycles in them and those that explain away what they see as there mere appearance of cycles.

And in a side note, Smith agrees with my evaluation of Minsky: Minsky's theory contained an actual cycle.

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