Finance in the Theory of Business Cycles
India Macroeconomics Annual, pp 145-160, 2008
28 Pages Posted: 8 May 2009 Last revised: 13 Jul 2014
Date Written: May 5, 2009
The question of aggregate welfare over time makes business cycle studies important. Finance studies allocation of resources under uncertainty. Thus both these fields of study dwell on intertemporal resource allocation under uncertainty. This paper attempts to shed light on how finance can be integrated into business cycle theory to provide richer and deeper insights than the standard real business cycle theory.
Keywords: Finance, Real Busincess Cycle Theory, Uncertainty
JEL Classification: E32, E44, G
Suggested Citation: Suggested Citation