Authors
Edward C. Prescott
Senior Monetary Advisor (former)
Business Cycles: Real Facts and a Monetary Myth
Abstract
This paper argues that the reporting of facts in light of theory fosters the development of theory. Dynamic neoclassical macro theory guided the selection of facts to report. The hope is that these facts will foster the further development of this theory. A finding is that the price level is countercyclical in the post-Korean War period. This finding debunks the myths that the price level is procyclical, with the postwar period being no exception.
Published In: _The New Classical Macroeconomics_ (Vol. 3, 1992, pp. 514-529)
Published In: _Business Cycle Theory_ (1995, pp. 67-82)
Published In: _The Rational Expectations Revolution: Readings from the Front Line_ (1994, pp. 307-334)
Published In: _Real Business Cycles: A Reader_ (1998, pp. 383-398)
Published In: _Business Cycle Theory_ (1995, pp. 67-82)
Published In: _The Rational Expectations Revolution: Readings from the Front Line_ (1994, pp. 307-334)
Published In: _Real Business Cycles: A Reader_ (1998, pp. 383-398)
