Antonio Fatás on Hysteresis and the Business Cycle
Macro Musings with David Beckworth
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Milton Friedman and the Business Cycle
Milton Friedman has two very different views of the business cycle. You can have a view of a natural rate and you still believe in asymmetric cycles, right? The big question is, what constitutes a cycle? What causes it? Are there positive or negative shocks? And I think we all understand when we try to write formal models, symmetric models are beautiful. They're easy to write, they're easy to solve.
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