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Article
Possibilities of Using Theoretical Hypotheses for the Analysis of Contemporary Economic Recession
Ryszard Barczyk
ABSTRACT. Deep economic recession observed in most market economies in recent years was caused by the outbreak of crisis on the international financial market. As economic consequences of these processes are negative, it is necessary to analyse them both at the theoretical and the empirical level.
The aim of this article is to analyse the possibilities and range of using theoretical hypotheses found in the related literature as regards the current financial crisis and business cycles to explain economic recession observed in the world economy in the period of 2007-2010. On these grounds, attempts will be made to define the level of development of theoretical models explaining the origin of business activity changes in the nominal and the real sphere and directions for further studies in this field will be formulated.
KEYWORDS: financial crisis, business cycle, recession, the Austrian School, monetarism, new classical macroeconomics.
JEL classification: E3.