Theoretical and Applied Economics
No. 7 / 2012 (572)
New approaches to business cycle theory in current economic science
Bucharest Academy of Economic Studies
Claudia Elena PAICU
Bucharest Academy of Economic Studies
Abstract. In modern economies, current research generally acknowledges that the central issues in macroeconomics are essentially the same as those identified by Keynes in the General Theory of Employment, Interest and Money. One way or the other, economists are trying to address the same macroeconomic issues that they did seven decades ago: How can we account for the different growth rates and various fluctuations observed in national economies? Which are the economic policies most suitable to solve the issues of growth and cyclic behavior? Both the new classicals and the new Keynesians have made considerable progress within their research paradigms: to explain economic fluctuations, the new classicals focus on technological perturbations, the intertemporal substitution of leisure and real business cycles; on the other hand, the new Keynesians speak in terms of monopolistic competition, menu costs or efficiency wages. On the whole, the new classicals believe that the business cycle can best be understood within the market-clearing model, whereas the new keynesians believe that business fluctuations are due to certain market failures of various sorts.
The present paper focuses on the main directions of research of the new classical school on the business cycle, given that the theoretical progress in this field has been significant and relevant for economic policy during the past four decades.
Contents
Estimating the probability of stock market crashes for Bucharest Stock Exchange using stable distributions
Analysis of the Romanian employment rate. A panel data approach
Consumer characteristics influencing milk consumption preference. The Turkey case
A regional analysis of the effects generated by the economic crisis and its impact on the outstanding loan portfolio in Romania
The amortization of fixed assets in terms of deferred taxes
Impact of the economic crisis on human resources development in Greek health system
Economics and “underground” economy theory
Entrepreneurial behaviour consequences on small and medium-sized firms’ innovation
The role of tender offer in FDI selection. Study case: Romania
Characteristics and drivers of venture capital investment activity in Romania
Globalization – tourism – communication, competitiveness triangle on the market affected by the economic crisis
New approaches to business cycle theory in current economic science