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EC4004 2008 Lecture6 Equilibrium Business Cycles

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EC4004 Lecture 6 Markets and the Macroeconomy III Stephen Kinsella The Business Cycle www.stephenkinsella.net
Last Time Markets -> Macroeconomy Intertemporal Sub. Effect Message: Households Respond over time to changes in interest rates
This Time: Business Cycles
Definition A non repeating pattern of economic growth and contraction about a trend.
Model
US Data
US Data
Irish Data Log Consumption blue and GDP red in Ireland, 1970 2006 25.5 25.0 24.5 24.0 23.5 23.0 22.5 5 10 15 20 25 30 35
EC4004 2008 Lecture6 Equilibrium Business Cycles
EC4004 2008 Lecture6 Equilibrium Business Cycles
EC4004 2008 Lecture6 Equilibrium Business Cycles
EC4004 2008 Lecture6 Equilibrium Business Cycles
EC4004 2008 Lecture6 Equilibrium Business Cycles

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EC4004 2008 Lecture6 Equilibrium Business Cycles