ABSTRACT
“That wine is not made in a day has long been recognized by economists.” With that declaration in Kydland and Prescott’s “Time to Build and Aggregate Fluctuations” (1982 [3]: 1345), * the real business cycle school was born. Like wine, a school of thought is not made in a day. Only after it has matured is it possible to judge whether it is good and to separate the palatable portions from the dregs. The literature on real business cycle models has now sufficiently aged, ready for the connoisseurs to pass judgment.
