Theories of the cycle embrace the notion of rational expectations, or the idea that expectations a

More forward looking. New Keynesianism suggests that fluctuations in aggregate demand accou n t

* Samuelson, Paul Anthony (1915—) — американский ученый-экономист.

** Hicks, Sir John Richard (1904-1989) — британский ученый-экономист.

*** Goodwin, Richard M. (1913-1996) — итальянский ученый-экономист.

**** Phillips, Alban William Housego (1914-1975) — британский ученый-экономист.

***** Kalecki Michal (1899—1970) — польский экономист и статистик.

for the cycle. New classical economics explains it in terms of unanticipated fluctuations in demand.

More recently, attention has been paid to the effects of shocks to the economy from technology

and taste changes. These “real” phenomena can, it is suggested, account for many economic fluctuations

(real business cycle theory). There has been much debate on the effectiveness of policymakers’

Attempts to dampen the cycle (policy ineffectiveness theorem), and there is a broad consensus

That governments should make strenuous efforts to avoid inflaming it.

Commentary and Notes to Text 16.7.1.1

Upward growth path — восходящая траектория (роста)

Time span — временной промежуток

To dampen the amplitude — смягчить (уменьшить) амплитуду

To be related to... — быть соотнесенным с...

An oscillating path — колеблющаяся траектория

Plausibly — вероятно, с большой долей правдоподобности