Supply Shocks in Macroeconomics
Working Paper 2146
Supply shocks played an important role in macroeconomic fluctuations during the 1970's. Supply shocks are also increasingly important in Keynesian and neo-classical models of the business cycle. This paper is a short survey of these theoretical models. It also discusses the history of supply shocks in recent business cycles.
Shapiro, Matthew D. "Supply Shocks in Macroeconomics," The New Palgrave, London: Macmillan, 1987.
Shapiro, Matthew D. "Are Cyclical Fluctuations In Productivity Due More To Supply Shocks Or Demand Shocks?," American Economic Review, 1987, v77(2), 118-124.