What I Learned from the Recession [Policy Perspectives]

I still have my job and home. Nonetheless this recession has taught me some very direct lessons about economics. Like many of you, I now know to spend more prudently, save more, and avoid taking on too much debt. But what about the big picture? What causes the economic fluctuations that give us our booms and busts? Do we know more about them than we did a century ago, or even three years ago? Here are some of the explanations that economists have given for business cycles.