Vol. 86, No. 4
Fourth Quarter 2001

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On Business Cycles and Countercyclical Policies
Marco A. Espinosa-Vega and Jang-Ting Guo
The authors examine two explanations for business cycles that are well-known in academic circles: the animal spirits theory and the real business cycle theory.

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What Remains of Monetarism?
R.W. Hafer
This article provides a historical perspective on the development and apparent failure of monetarism as a policy guide.

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Assessing Simple Policy Rules: A View from a Complete Macroeconomic Model
Eric M. Leeper and Tao Zha
Monetary policy analysts looking for a model on which to base decisions may consider two popular approaches—the New Keynesian (NK) and the identified vector autoregression (VAR) approaches. Choosing between the two can be difficult.