Bài giảng Kinh tế vĩ mô - Chương 19: Advances in business cycle theory - Phan Thế Công

In this chapter, you will learn…
 an overview of recent work in two areas:
 Real Business Cycle theory
 New Keynesian Economics 
The Theory of Real Business Cycles
 All prices are flexible, even in short run:
 thus, money is neutral, even in short run.
 classical dichotomy holds at all times.
 Fluctuations in output, employment, and
other variables are the optimal responses
to exogenous changes in the economic
environment.
 Productivity shocks are the primary cause of
economic fluctuations.