For example, Wikipedia asserts that

Real business-cycle theory (RBC theory) are a class of New classical macroeconomics models

Whereas Snowdon and Vane (2005, p. 28) prefer to distinguish between 7 separate schools of thought "that have made a significant contribution to the evolution of twentieth-century macroeconomics", namely

  1. Orthodox Keynesian
  2. Orthodox monetarist
  3. New classical
  4. RBC
  5. New Keynesian
  6. Post Keynesian
  7. Austrian

So what are the prominent arguments for and against placing RBC as a subset of the New Classical school of thought?


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.