psychology

Publication date: 5 Jun 2019 | Publication type: NIESR Discussion Paper | Theme: Macroeconomics | Authors: Farmer, R | JEL classification: D5, E40 | NIESR discussion paper number: 507
This article surveys a subset of literature in macroeconomics which embraces the existence of multiple equilibria. This indeterminacy agenda in macroeconomics uses multiple-equilibrium models to integrate economics with psychology. Economists have long argued that business cycles are driven by...