A Framework for the Appraisal of Economic Crises
Lall Ramrattan

This paper presents a framework to integrate thoughts on business cycles. The model is a two-sided frameworkthat capture thoughts on business cycles that is reminiscent of Newton’s law 􀜨 = 􀝉􀜽in Physics, though it is not as mechanical. One side (􀜨) deals with policies, while the other side (􀝉􀜽) deals with the market mechanism such as in general equilibrium analysis. Any distortion in a sectoron the 􀝉􀜽-side cantrigger a policy action on the 􀜨-side. The framework opens up a learning process that allows us to understand business cycles, and to steer the economy to desired goals.

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