TY  - JOUR
AU  - Eichenbaum,Martin S.
AU  - Singleton,Kenneth J.
TI  - Do Equilibrium Real Business Cycle Theories Explain Post-War U.S. Business Cycles?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1932
PY  - 1986
Y2  - May 1986
UR  - http://www.nber.org/papers/w1932
L1  - http://www.nber.org/papers/w1932.pdf
N1  - Author contact info:
Martin S. Eichenbaum
Department of Economics
Northwestern University
2003 Sheridan Road
Evanston, IL  60208
Tel: 847/491-8232
Fax: 847/491-7001
E-Mail: eich@northwestern.edu

Kenneth J. Singleton
Graduate School of Business
Knight Management Center
Stanford University
Stanford, CA 94305
Tel: 650/723-5753
Fax: 650/725-6152
E-Mail: kenneths@stanford.edu
M1  - published as Martin Eichenbaum, Kenneth I. Singleton. "Do Equilibrium Real Business Cycle Theories Explain Postwar U.S. Business Cycles?," in Stanley Fischer, editor, "NBER Macroeconomics Annual 1986, Volume 1" MIT Press (1986)

AB  - This paper presents and interprets some rw evidence on the validity of
the Real Business Cycle approach to business cycle analysis. The analysis is
conducted in the context of a nnetary business cycle model which makes
explicit one potential link between monetary policy and real allocations.
This model is used to interpret Granger causal relations between nominal and
real aggregates. Perhaps the nost striking empirical finding is that money
growth does not Granger cause output growth in the context of several
multivariate VARs and for various sample periods during the post war period in
the U.S. Several possible reconciliations of this finding with both real and
monetary business cycles models are discussed. We find that it is difficult
to reconcile our npirical results with the view that exogenous monetary
shocks were an important independent source of variation in output growth.
ER  -