Benjamin Schoefer on the Musical Chairs Model

Over the past decade, I’ve been advocating what I call the “musical chairs model” of the business cycle. This is from a 2013 blog post: You don’t need DSGE models to understand business cycles, it’s basically just a game of musical chairs.  Nominal wages are very sticky and NGDP is very volatile. So when NGDP … Continue reading Benjamin Schoefer on the Musical Chairs Model