Paul Krugman disses RBC theory and those who study it as unscientific. I’m not an RBC theorist, but I’ll stick up for freshwater macro. Here are some reasons why RBC theory deserves more respect than Krugman gives it. Suppose monetary policy is conducted so that all nominal shocks are perfectly offset. Zero percent of
Why RBC is awesome
Why RBC is awesome
Why RBC is awesome
Paul Krugman disses RBC theory and those who study it as unscientific. I’m not an RBC theorist, but I’ll stick up for freshwater macro. Here are some reasons why RBC theory deserves more respect than Krugman gives it. Suppose monetary policy is conducted so that all nominal shocks are perfectly offset. Zero percent of