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Permanent and Transitory Components in Macroeconomics

  • Marco Lippi
  • Lucrezia Reichlin
Part of the International Economic Association book series (IEA)

Abstract

The Keynesian approach to macroeconomics, which prevailed until the end of the 1960s, distinguished quite neatly between those forces that drive the economic system along its long-run path and forces causing fluctuations around that path. Macroeconomists were mainly concerned with these latter, and since excessive fluctuations were considered as undesirable, or even politically and socially dangerous, the most important aim was to provide suitable techniques to reduce their amplitude.

Keywords

Random Walk Spectral Density Business Cycle Unit Root Total Factor Productivity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© International Economic Association 1991

Authors and Affiliations

  • Marco Lippi
    • 1
  • Lucrezia Reichlin
    • 2
  1. 1.UniversitÀ di modenaUK
  2. 2.OfceParisFrance

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