Interest Rates & the Business Cycle Research Paper by The Research Group

Interest Rates & the Business Cycle
Defines business cycle, theories and empirical relationships between interest rates and the cycle. 6 Diagrams.
# 10985 | 3,150 words | 7 sources | 2001 | US
Published on May 16, 2003 in Business (Finance, Investment and Banking) , Economics (Macro)

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From the Paper:

"What economists term the business cycle has been the subject of much study since its emergence during the industrial revolution. The roller coaster behavior of growth in the economy has eluded full explanation and led to the development of a variety of schools of thought on the issue. While traditional economists focussed on money as the key cause of cyclical activity, more recent analysis has turned to technological shocks as the driving force behind the business cycle (Christiano and Fitzgerald, 1998). Despite the tendency of these most recent studies (referred to as real business cycle theory) to discount the causal relationship between interest rates and the..."

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