The Costs of Business Cycles

How much would you pay to avoid a recession? In other words, can we place a price on the economic costs of business cycle fluctuations? Standard economic models give some clues but they bring difficulties. Can we account for the known difficulties with these models, or is it yet more complicated? In the real world, might government policy have already acted to reduce the costs of fluctuations?

The School’s Professor Jagjit Chadha is the Mercers’ School Memorial Professor of Commerce at Gresham College. He gave the latest in a series of lectures on 10 October on the subject of ‘The Costs of Business Cycles’.  You can view the complete lecture here:

You can view past lectures by Professor Chadha plus details of future ones at