Economic Fluctuation and Real Business Cycle Theory
|Keywords||Economic fluctuation Real business cycle theory Technology shock|
Business cycle problem, not only exists in western industrialized countries, but also is popular in our country. Economic fluctuations have impact on every aspects of one country’s economic system, such as fluctuations in GDP, fixed investment, employment, wage, etc. These problems not only have relation with stability and growth of one country, but also have relevance with individual’s welfare and living conditions. In fact, economic fluctuation problem have absorbed more and more attention from government, firms, academic groups, and individuals. The thesis tries to review the theories of business cycles, and combine them with China’s economic fluctuation problem, find the theory that is fit for China.The thesis is divided into seven chapters. In chapter 1, I start with a brief description of the main content of the thesis and the framework of the thesis. In chapte 2, I review the research on business cycles in China. In chapter 3, I discuss the definition, type, and some stylized facts of business cycles. In chapter 4,I expatiate on the substantial amount of research on business cycles in western countries. In chapter 5, I introduce the real business cycle theory, and address its general solve solution process by an example. In chapter 6,I give some brief comment on real business cycle theory. In chapter 7, I make the suggestion that apply real business cycle theory on China economic fluctuation problem research.