Output and Inflation Co-movement.
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| Author / Creator: | Andrle, Michal. |
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| Imprint: | Washington, D.C. : International Monetary Fund, 2017. |
| Description: | 1 online resource (38 pages) |
| Language: | English |
| Subject: | |
| Format: | E-Resource Book |
| URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12350279 |
| Summary: | What are the drivers of business cycle fluctuations? And how many are there? By documenting strong and predictable co-movement of real variables during the business cycle in a sample of advanced economies, we argue that most business cycle fluctuations are driven by one major factor. The positive co-movement of real output and inflation convincingly argues for a demand story. We propose a simple statistic that can compare data and models. Based on this statistic, we show that the recent vintage of structural economic models has difficulties replicating the stylized facts we document. |
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| Physical Description: | 1 online resource (38 pages) |
| ISBN: | 147556919X 9781475569193 |