Real business cycle theory has long been recognized as 'important' but at the same time it has aroused 'significant' opposition and controversy.
This volume draws together for the first time the most important articles on real business cycle analysis and the most significant criticisms of them. The introduction provides a richly detailed survey of the state of the real business cycle controversy, and shows how the articles in the volume relate to one another, what issues they address and to what degree those issues are resolved or open to continued debate. Crucially, the Introduction also includes a User's Guide to the construction and evaluation of real business cycle models which will aid understanding of the subsequent articles.
This is the first time a balanced assessment of real business cycle theory has been presented in one volume. It will be essential reading for students and professionals in the field of macroeconomics.