Business Cycle Theory

"Is the business cycle obsolete?" This often cited title of a book edited by Bronfenbren­ ner with the implicit affirmation of the question reflected the attitude of mainstream macroeconomics in the 1960s regarding the empirical relevance of cyclic motions of an economy. The successful income policies, theoretically grounded in Keynesian macroec­ onomics, seemed to have eased or even abolished the...