Date of Award


Degree Type


Degree Name

Master of Arts (MA)

Author's Department


First Advisor

Patrick M. Lenihan


The emphasis in the study of economic fluctuations has been placed upon the disequilibrium nature of the growth process with private investment playing such a key role in generating oscillatory behavior. The view taken in this paper, however, is that fluctuations in aggregate economic activity are equilibrium phenomena. Expansionary and contractionary processes are considered as continuous adjustments along an equilibrium path through time.

The Hawtrey-Hicks monetary hypothesis is used in this study to explain irregular fluctuations in economic activity. Monetarist propositions together with rational expectations and dual-decision hypotheses are then drawn from the Hawtrey-Hicks analysis for the testing purposes. Quarterly data (1955: I to 1981: IV) are used in single-equation ordinary least squares regression estimations. The conclusion to be drawn from the study is that empirical evidence supports the hypotheses.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Included in

Economics Commons