For those who are interested in the debate between the New Keynesians and the Real Business Cycle folks, the following links may be of interest.
- Discussion on the Marginal Revolution blog after Kydland and Prescott won the 2004 Nobel.
- Sergio Rebelo’s summary of real business cycle theory
- The Prescott-Summers debate over RBCs in the Minneapolis Federal Reserve’s journal (scroll down to the Fall 1986 issue)
- A fairly recent piece by Prescott on the causes of depressions and recesssions
- Greg Mankiw’s paper, Real Business Cycles: A New Keynesian Perspective