Business Cycles: Fact, Fallacy And FantasyThis book provides an overview of the modern theory and empirics of business cycles. Written by one of the pioneering authors in this field, it examines the notion of a business cycle and discusses alternative approaches to modeling. Arguably, one of the most important debates in this literature has been the issue of matching a business cycle to the data. In their original contribution, Kydland and Prescott (1982) proposed the method of calibration as