Real Shocks and Business Cycles
Scott explains why real shocks may not be the primary cause of recessions and unemployment in large, diversified economies like the United States. He argues that fluctuations in employment, rather than GDP, are the key factor in understanding business cycles. Scott provides historical examples, such as the 1987 stock market crash and the Japanese tsunami, to support his perspective on the role of real shocks in the economy.In this clip
From this podcast
EconTalk
Scott Sumner on Money, Business Cycles, and Monetary Policy
Related Questions